Factors Attracting FDI Inflow in China

Abstract

The purpose of this article is to highlight the important determinants of FDI inflow in China. This article attempts to answer the question: "What are the important factors attracting FDI inflow in China?" It is concludes that market size, growth in Chinese economy, low labor cost, quality infrastructure, open policies to international trade, economic policies tax policies and exchange rate are important factors of FDI inflow in China. Theoretically, it will fill the gap in the literature and help to the economists and investors to understand that why FDI inflow is increasing in China.