Introduction

The success of the People's Republic of China in attracting foreign direct investment (FDI) in the last decade is unprecedented. Since 1993, China has maintained its position as the second largest FDI recipient in the world for at least six years, and the single largest among developing countries for ten consecutive years[1]. In 2003, China outstripped the United States and became the largest FDI recipient in the world[2]. The growth rate of its FDI stock over the past decade has outpaced that of all other major economies in the world[3], with the total stock reaching $ 501 ...