Abstract

There is little doubt that the phase-in FDI contributed significantly to Chinese economic development, and much
and perhaps most of the growth of China’s exports can be attributed to foreign-invested enterprises and per
capita income growth in those coastal regions of China where FDI is concentrated has been demonstrably higher
than in other regions. FDI is fuelling much of the rapid economic leap of China, yet it is not well integrated into
mainstream of Chinese economy and the significant inequity grow further, for the reason that these inflows of
investment are, however, concentrated both by country of origin, industries and regions. The author concludes
that the FDI policies are no longer producing optimal results, and there should be a caveat to the non-guided FDI
since the FDI spillovers can not, in all probabilities, be easily disentangled from its economic cohesions.

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