aviation, railway equipment, and law and accounting firms (Drysdale & Song 2000 56). China began gradually to bring in FDI to help resuscitate sectors formerly dominated by SOEs. According to Child (1999), the share of SOEs in China's gross industrial output has declined from 75.97 percent in 1980 to 25.52 percent in 1999 (447).
Controls on remittance of foreign profits were relaxed. Various tax and other privileges and concessions were extended to foreign investors to induce them to establish or expand their operations in China. The various reforms in China's foreign investment and foreign trade laws and regulations were accompanied by extensive domestic reforms. These included the recognition of private property rights, at first in agriculture and later in other parts of the domestic private sector, monetary reforms, the establishment of a stock market, etc. External agreements with western governments and Japan culminating in the WTO arrangements have resulted in lower Chinese tariffs against imported goods, a
...