3Factors affecting an investment environment are numerous. First and
foremost, a stable political situation, a stable social order, and consistent
policies to attract foreign capital are essential. There should also be good
profit-making opportunities--a prime concern of foreign investors--the
legitimate rights and interests of foreign entrepreneurs should be protected, and incentives should be offered.The investment policies and incentives provided by the Chinese government are generally positive and flexible depending on the particular investment and where it is placed. Covering a wide range of areas, they include:
Investment Policies and
|1. ||variances in the degree of foreign ownership|
|2. ||flexible project duration|
|3. ||free choice of investment sectors|
|4. ||flexible size of investment project|
|5. ||free choice of investment location|
|6. ||lower corporate tax rates|
|7. ||flexible policies on land use|
|8. ||relatively flexible management, employment, and wage systems|
|9. ||flexible policies on product pricing structures|
|10. ||variable terms for financing and remittance of profits|
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Foreign Direct Investment in China.
Contributors: Phillip Donald Grub - Author, Jian Hai Lin - Author.
Publisher: Quorum Books.
Place of publication: New York.
Publication year: 1991.
Page number: 37.
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