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By Jing Zhang (auth.)

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Additional info for Foreign Direct Investment, Governance, and the Environment in China: Regional Dimensions

Sample text

In 2010, 47 batches of illegal imports of solid waste were prevented from entering or were sent back to the originating country. Some countries shipped solid waste to China for disposal and dumping rather than recycling. Some imported solid waste cannot be used for raw materials or used in an environmentally sound manner. Some imported waste, such as electric appliances, are highly hazardous. 14 These imported solid wastes are usually dismantled and processed in very primitive ways, for instance using hammers and stoves, in legal or illegal small-scale workshops.

China further adjusted the institutional and legal environment to comply with WTO rules. It gradually opened up its service industries to foreign investors, such as telecommunications, banking, insurance, tourism, retail and distribution. In terms of the form of FDI, wholly foreign owned enterprises became the most popular mode, correspondingly the share of joint ventures declined. In addition, new forms of FDI, such as mergers and acquisitions (M&As) activities increased but official data is not available.

Provinces in south east China seem to be better off than the rest of the country. When looking at the GDP growth rate, the data shows that central and western regions generally had higher growth rates than eastern regions, indicating a trend of convergence in economic development. However, because the gap was so large, there is still a long way to go before the inland regions catch up with those in the east. In summary, China has become a big economy thanks to its 30 years of economic reform. Secondary industry has been the biggest contributor to its economy and economic growth but services sector seems to be increasing in importance.

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