Foreign Investment Law in the People's Republic of China: Dilemmas of State Control

Abstract

The legal regime for foreign investment in the People's Republic of China over the past 15 years has reflected a basic tension between encouraging foreign business activities and maintaining state control over them. While China's policies may be viewed as attempts to pursue an independent path towards development, neo-classical and critical perspectives on the role of the state in economic development provide useful contexts within which to view the PRC's efforts at harnessing foreign investment in pursuit of economic growth. This article reviews the structure and performance of foreign investment law and policy in the People's Republic of China in the context of these alternative approaches to the role of the state in economic development.

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