China's macroeconomic policies and their impact on foreign direct investment

As a result of the 'Open Door' policy adopted by the Chinese government, the rate of growth of Foreign Direct Investment has been spectacular. Over the recent years, China has proven to be a favourite investment destination for foreign investors. Development of the Special Economic Zones has become an integral part of China reform and opening up to the outside world. However, as China's economy becomes overheated, it is of good interest to foreign investors to uncover the moves made by the Chinese government in its bid to curb inflation. The various policies implemented by the Chinese government, namely the monetary policy, fiscal policy and exchange rate policy, are important to the successful competitive performance for their organisations in China. Therefore, this report focuses on the study of different macroeconomic policies implemented by the Chinese government that may affect Foreign Direct investments that have expanded in China or are thinking about extending their operations to China in the near future.BUSINES