China’s utilization of foreign capital

Before 1989, China takes advantages of her preferential policies to attract foreign capitals but for many reasons, the scale of foreign capitals is quite small, After 1992, Deng Xiaoping's south cruise, the foreign capital began to flow into China in large-scale. The reason is that the profits of enterprises decreased, the market shank and the commodity price went down, which resulted form the slack of Chinese economy form 1989 to 1992. In order to get out of the deep end, the all the enterprise, the enterprises expected to refresh the techniques and offer more new products to quickly capture the market, and survived and developed through the difference of system and price, particularly the preferential treatment. Therefore，foreign capitals were strongly needed（also resulted form the difference of internal and external policies）, while the expanding of influx of foreign capitals into China happened. This stage didn’t end until 1997. In this stage, the joint venture started competing intensively (primarily for technique, market shares and non- price factors) in Chinese market, and led to the maturity of Chinese market competition.
The utilization of the foreign capital has already entered a new stage regarding financial crisis in Asia, which is symbolized by the followings
1. The percentage of foreign capital over the whole investment decreases, and has come into a low percent period. Meanwhile, the need of foreign capital is saturated. After 1992, despite that The utilization of the foreign capital has already entered a new stage, the peak is 1994 when the percentage of foreign capital over total investment was about 22.75%, henceforth the percent gradually descended. This showed that the need of foreign capital in Chinese market had been relatively saturated or balanced. In 1997 and 1998，

Chapter 1: the new stage of China’s use of foreign capital
Chapter 2: the problems and countermeasures of China’s utilization of foreign capital
Section 2 Major Countermeasure Which Should be Adopted Currently
Section 1: Current major problems of utilization of foreign capital
Chapter 3: the new thoughts of utilizing foreign capital
Chapter 4:the estimation of China attracting the foreign capital in 2002
Chapter 1: the new stage of China’s use of foreign capital

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