With a population of 1.2 billion and nearly two decades of spectacular growth, China promises to become one of the world's largest economic powers and consumer markets in the next century. This potential has made China into one of the most attractive host countries for foreign direct investment. "State intervention and business in China" analyses the impact of preferential policies, the main vehicle of government intervention designed to influence firm's business decisions. Dr Ding and Dr Zhimin present a systematic study of China's preferential economic policies in the manufacturing industry in three core areas; namely investor, region and industry oriented policies. These fast changing policies have had great influence on a wide range of economic activities, including foreign direct investment. The extent, complexity and variety of preferential policies are bewildering to both investors and academics who study the Chinese economy.
The authors give a clear account of policies including: preferential tax rates, state bank loans and trade protection and subsidies, and provide a political and economic analysis of their impact of state intervention on regional development and sectoral changes and presents an analysis of administrative uncertainties. By reviewing the recent policy changes and the views of experts, scholars and policy makers in China, this important book sheds new light on the economic prospects for China. "State intervention and business in China" will be indispensable for scholars and specialists who are interest in contemporary Chinese economy and society. It is also a valuable guide for doing business in China.