Business environment for foreign enterprises in China: evaluation and solutions

LI Yumei1 SANG Baichuan1

(1.Institute of International Economy, University of International Business and Economics)

【Abstract】Since China started its reform and opening-up forty years ago, it has been actively encouraging foreign enterprises to invest in the country so as to become a major destination for foreign direct investment. In recent years, with the transformation and upgrading of its economic structure, its business environment for foreign enterprises has also undergone structural changes. In its Special 301 Report, the United States criticized China of having failed to provide a sound environment to foreign investors. Based on the analysis of the motives of foreign investors in China, this paper evaluated business environment for the different types of foreign investors and used the attraction and potential indexes of business environment for foreign investors to study the general conditions of business environment for foreign investors. China is quite competitive in terms of overall business environment but it still needs to make improvement. Based on the evaluation results, this paper puts forward suggestions for improving the country’s business environment for foreign enterprises.

【Keywords】 foreign investment; business environment; attraction index; potential index;


【Funds】 The National Science Fund of China (15BJL081) The National Science Fund of China (17AZD010) Distinguished Young Scholars Project of University of International Business and Economics (17JQ04)

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This Article


CN: 11-3799/F

Vol , No. 05, Pages 49-60+5

September 2018


Article Outline


  • 1 Global Competitiveness Index system of absorbing FDI
  • 2 Evaluation on the international competitiveness of China’s absorption of FDI
  • 3 Improving the business environment of FDI
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