A comparative analysis of the foreign investment policies of the United States and China
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| Format: | Thesis |
| Kulcsszavak: | China competitiveness (economics) economic developement Foreign Direct Investment international economic relations investment United States |
| Online Access: | http://dolgozattar.uni-bge.hu/47100 |
| Abstract: | AbstractIn my thesis I will compare the investment policies ofthe two strongest economies, the United States and China. Foreign directinvestment is at the heart of economic development in both countries.Therefore, my main objective is to find out the similarities and differencesbetween the economic institutions of China and the United States that areresponsible for investment policies. These rules and regulations can promoteand strengthen the investment confidence of foreigners and foreign-ownedenterprises.National security concerns and foreign directinvestment have been linked in recent years, leading to restrictions on foreigndirect investment in key industries and infrastructure in both countries. Atthe same time, they have introduced pre-screening systems to vet companies andinvestors, especially when a foreign government is behind a company. In the US,this trend gained momentum after the 2001 terrorist attacks and the role of theCommittee on Foreign Investment in investigations was expanded. In China, onthe other hand, the government has introduced a licensing system, which meansthat companies need a license to operate and invest in certain sectors of thecountry. A very similar improvement is that in both countries the policy-makingprocess was shifted from the federal/central level to the state/provinciallevel. Local governments were given more powers, which led to an improvement ininvestment policy and significantly improved the regional distribution of FDI.On the other hand, investment promotion became verypopular after the turn of the millennium. The Chinese Ministry of Commerceestablished the China Investment Promotion Agency (CIPA), while the USintroduced the SelectUSA program, which provides foreign investors with advice andinformation to boost their confidence in the country. |
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