Within the late 1970's, the People’s Republic of China
started its policy which in turn would encourage foreign
investment. Since 1979, China has turned its focus on
acquiring an active role in the international business
environment. From then on China has spent numerous years
actively modernizing its legal structure, culminating in its
effective entry to the Globe Trade Organization in 2001. The
scale of foreign investment has elevated after year of 2001.
The Chinese economy has developed fast considering the joint
of Globe Trade Organization (WTO) in 2001 there has been
additional expansion of the economy. It has resulted in
relaxation of trade barriers and liberalization of the
company laws. The Chinese economic climate has shifted from
centrally controlled system of the government to a market
oriented economic climate supporting foreign investments.
China has benefitted from the elevated access of the foreign
goods by way of export into the foreign market. The export
of China has enhanced to US $ 762.7 billion in 2005. It has
turn out to be the second largest recipient of Foreign
Direct Investment (FDI) following United State of America.
There has been a change in the Company Law from the People's
Republic of China (PRC) of 1994. Previously the foreign
investment in China took the three standard forms namely
Chinese- Foreign Equity Joint Venture, Chinese- Foreign
Contractual Venture and Wholly Owned Foreign Enterprises
(WOFE). Among the initial major measures was the
promulgation of the Law of the PRC on Chinese-Foreign Equity
Joint Ventures (the "PRC Joint Venture Law") in 1979 which
governed foreign investment. As a direct result of this, the
first Sino-foreign joint venture was established in 1980.
The management of those three forms of Enterprises was
plagued with inflexibility as these were governed by
separate specialized legislations. The foreign investor can
now open a Private Limited Liability Company and Public
Companies issuing shares. This is an significant step to a
friendly foreign investment.
As the second largest economy already, China continues to
grow quickly establishing its position as a major economic
player, putting its ambitions on becoming the world's
largest economic climate in the following 15 years.
China is deemed a crucial nation and recognized as a nation
of development and massive potential. With this development
comes an increasingly high demand for those who can bridge
the gap with firm information of Mandarin as well as an
understanding of Chinese enterprise culture. Many business
practices in China remain diverse from the rest around the
world. Studying business and knowing the business culture of
China puts you at a huge advantage.