Foreign firms invest in China primarily for the following reasons:

(1) The good development trend of Chinese economy provides a huge development space for foreign investments. In the circumstances that the global economy grows slowly and the economies of developed countries such as the US and Japan remain sluggish, Chinese government adheres to the guideline of expanding the internal demand, continues to implement the positive financial policy and steady monetary policy, and accelerates the adjustment of the economic structure. In the meantime, by further expanding the opening to the outside world and by actively and steadily promoting the reforms in accordance with China's situation and the laws of market economy, China has continuously improved the overall quality and benefit of the economic running, thus maintaining a strong momentum of growth.

(2) Stable political situation. Encouraging foreign investments is an important part of China's basic policy. For a long period of time, Chinese government has consistently paid much attention to and welcome foreign investments in China and has made unremitting efforts in improving investment environment and in protecting the legal rights and interests of foreign investors.

(3) Broad market potential. With China's economy on continuously fast growing, the potential of domestic market is enormous. Thanks to China's stable politic environment, fast economic growth (the GDP rose by 7.9% from January to September this year), high-quality and low-cost labor force, complete set of industries, good return on investment, etc, China exhibits strong attractiveness to numerous foreign firms, including multinational ones, under the current circumstances of accelerated adjustment of industrial structure worldwide.

(4) Advantages in work force, such as a big number of skillful workers, technicians, and managers. These advantages will exist for a long time, thereby attracting multinational companies to transfer their production and processing bases to China continuously.

(5) Foreign firms' experience of successful investments in China during the past twenty years of China's reform and opening strengthens foreign investors' confidence in investing in China and makes China the first choice of places for foreign investors to invest in.
 
Foreign firms invest in China primarily for the following reasons:

(1) The good development trend of Chinese economy provides a huge development space for foreign investments. In the circumstances that the global economy grows slowly and the economies of developed countries such as the US and Japan remain sluggish, Chinese government adheres to the guideline of expanding the internal demand, continues to implement the positive financial policy and steady monetary policy, and accelerates the adjustment of the economic structure. In the meantime, by further expanding the opening to the outside world and by actively and steadily promoting the reforms in accordance with China's situation and the laws of market economy, China has continuously improved the overall quality and benefit of the economic running, thus maintaining a strong momentum of growth.

(2) Stable political situation. Encouraging foreign investments is an important part of China's basic policy. For a long period of time, Chinese government has consistently paid much attention to and welcome foreign investments in China and has made unremitting efforts in improving investment environment and in protecting the legal rights and interests of foreign investors.

(3) Broad market potential. With China's economy on continuously fast growing, the potential of domestic market is enormous. Thanks to China's stable politic environment, fast economic growth (the GDP rose by 7.9% from January to September this year), high-quality and low-cost labor force, complete set of industries, good return on investment, etc, China exhibits strong attractiveness to numerous foreign firms, including multinational ones, under the current circumstances of accelerated adjustment of industrial structure worldwide.

(4) Advantages in work force, such as a big number of skillful workers, technicians, and managers. These advantages will exist for a long time, thereby attracting multinational companies to transfer their production and processing bases to China continuously.

(5) Foreign firms' experience of successful investments in China during the past twenty years of China's reform and opening strengthens foreign investors' confidence in investing in China and makes China the first choice of places for foreign investors to invest in.