Foreign Investment in China

China utilizes foreign investment through various channels and forms. There are three major foreign investment categories. First, foreign loans, including loans from foreign governments, international financial institutes and commercial banks, export loans, and overseas bonds; second, direct foreign investment (FDI), including Sino-foreign joint ventures, cooperative ventures, enterprises exclusively owned by foreign investors, and cooperative projects; third, other foreign investments, including international leasing, compensation trade, processing and assembling, and overseas stocks.

From 1990 to 2001, China had utilized $510.8 billion in actual terms, including $378 billion FDI. In 2002, China utilized $55 billion in foreign investment, including 52.7 billion of FDI, becoming the country that has attracted the most foreign investment in the world. In 2003, China's FDI kept a steady growth at various levels. The government approved to establish 41,081 FDI enterprises in that year, an increase by 20.2% over the previous year. Total FDI contracts in 2003 were worth $115.1 billion with an increase of 39%. The actual investment was $53.5 billion, increasing by 1.4%.