Doing Business in China

China Alliance--- The Chinese government has gradually been reforming China's economy and opening the Chinese market to foreign investment. This process has been accelerated since China joined the WTO in late 2001. Since that time, the Chinese legal system has developed very quickly. Much emphasis has been placed on passing laws, regulations and policies to encourage foreign trade and investment. As a result, foreign investment has increased in a wide variety of industry sectors.

However, foreign investors should be aware that investment in China remains quite restricted in some areas and that the Chinese legal system is less than fully developed. Although the Chinese market presents many opportunities for foreign investors, expectations and investment strategies should be adjusted to take these factors into account. This memorandum will provide a broad overview of the Chinese foreign trade regime and the various forms foreign investment may take in China. It will also briefly analyze the impact that China’s WTO accession may have on foreign trade and investment.