China's reform and opening up program is now in its 40th year. In the four decades since this pivotal program was launched，foreign capital has been an important factor in the rapid development of the economy and the dramatic rise in living standards. Through determined improvements in the level of market opening and the use of investment-friendly policies，China has become one of the major destinations for cross-border investment.

Foreign investment has not only filled China’s economy with much needed capital，it has promoted foreign trade，increased employment，and made important contributions to the expansion of China’s economy and the improvement of the quality of life. According to data released by the National Development and Reform Commission，foreign companies account for nearly half of combined imports and exports，one quarter of all industrial output，one-fifth of tax payments and one-tenth of all employment in China. Foreign-funded enterprises have significant benefits to the development of Chinese enterprises and industries. The competitiveness of China’s industry has been enhanced by the introduction of advanced production technologies as well as top grade management experience and high-quality talent. At the same time，the increasing sophistication of the manufacturing supply chain in China and the rapidly expanding domestic consumer market have provided a favorable operating environment for foreign companies. As a result，China and foreign companies have truly achieved win-win outcomes from investment in this country.

In the future，the door to China’s economy will not be closed. In fact，the degree of opening will become increasingly wider as China seeks to ensure an even more attractive foreign investment environment.

Changes in the Investment Environment