After 2000, especially after the entry of the WTO , China made use of the foreign capital with various ways, expanding scales and high quality. In 2001, the year China entering WTO, the foreign capital entering China grew by 14.7% and hit a record high. The entry of WTO meant that China has stepped into a brand new period, when China’s market economic system gradually integrated with the world market and shared the same rules and standards with the other countries. This change actually provided the foreign investors with a low-cost and low-risk environment, under which their advanced techniques, managerial experience and marketing channels could be better utilized with China’s labor resources and potential market. 毕业论文
http://www.751com.cn/Compared with the other policies, China’s entry of WTO pushed China’s market economy system more standardized, and this pushing power would always influence China’s development of economy.
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3.1 The Top Destination for Foreign Capital
Why dose foreign capital flow over into China’s market? There are two main reasons. Firstly, China is the biggest and most potential market in the world, because China owns the biggest population in the world and most regions of China are underdeveloped and need to develop. The abundant natural resources and labor resources of China are the second attraction. China owns abundant gas resource, oil resource, iron ore resource and water resource, which are the essences for development. Also, China has approximately 0.8 billion labors while America has only 0.15 billion labors. Besides these two major advantages, the China entering WTO with more industries of China opened to the other countries and the strong growth of China’s GDP, about 10% annually, make the foreign investors more confident in the future of China. China’s preferential policies for foreign capital are also another attraction. In some regions of China, the foreign-invested enterprises enjoy lower income tax rate, which is 24% or 15%, than that of domestic enterprises, which is 33%. Some local governments even provide land with low price to attract foreign capital and develop local economy.
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