China has a strong economy with a good growth rate of about 8 percent officially and even if the official rates are overated on an average the growth rate is 5 percent which shows the economy is growing immensely. Privitization has caught up pace in China due to which the country has a positive balance of payments with a stable yet protected currency. Information and technology have gained sudden importance inChina. The growth rate is good and so is the GDP, the consumers are spending more which shows increase in purchasing power and interest rates are in a decline. This situation of the economy has attracted foreign direct investment intoChinamaking it the most attractive country ofAsiafor investment.
The Chinese market has great potential in terms of its size and profitability and this has attracted many companies from the US to operate in Chinaand sell to Chinese multinationals. China attracts the most foreign investment in whole of Asia and is serving as a major driver for the growth of the economy. The major reason to the increasing investment entering China is the way forward to WTO, low cost labor, a great potential in the local market, feasible for globalization, the recent surge of privatization and growth policies by the government, increasing income per capita and GDP and reforms that encourage growth.
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