Foreign investment is a broad term. It includes foreign direct investment (FDI), portfolio investment, loans, and bilateral credit. The following examination focuses on FDI, because it has the greatest importance for China's economic development. For a land like China, whose modern economic development began quite late, a rapid economic overhaul was only possible with foreign assistance. Accordingly, since the beginning of the reform policy at the end of 1978, China has concentrated not only on foreign trade but also on FDI. Despite repeated course changes this policy h…