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Tennis

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Abstract
Over the past 33 years, China has been the recipient of a large amount of foreign direct investment (FDI). As a result of this, capital inflow and technology spillover allowed outward FDI from China. Inward FDI contributes to China’s financial growth and industrial development, tax revenue increases, and improvements in the quality of labor. The contribution of inward FDI to gross domestic product on average is 3-6%. Also, outward FDI improves China’s dynamic competence as well as helps the host countries with capital inflow and infrastructure improvement.
Inward FDI
Since China has an open and reform strategy, the government created FDI advancement strategies after 1978. In 1978, Coca Cola and Panasonic came into the People’s Republic of China. Before this, many foreign companies were leaving the PRC (Shell in 1966). The open guidelines and market forecasts caused Hong Kong, China; Japan; and the U.S. to start investing. In 1990, FDI influxes to the PRC are at $3.5 billion. The majority of the inflows came from Hong Kong, China; Japan; and the U.S. Hong Kong accounted for 54.9%, Japan for 14.4%, and the U.S. for 13.1%. Since the past 20 years, China’s FDI inflow has matured from $3.5 billion to $100.0 billion. The foundations, purpose, structure, and the goal of the foreign companies that invested have changed radically.
Outward FDI
After 1976, China’s government allowed domestic entities to create joint endeavors overseas. Most of the endeavors assisted the domestic economy. The major businesses are in processing and marketing of exported products as well as mining and forestry. At the close of 1984, there were 113 joint ventures that totaled $150 million. Twenty of these ventures are found in Third World countries. During 1987, 109 of the joint ventures were found in emerging countries which accounted for 88.8% of the freshly financed joint

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