United States Department of State

China United States Department of State

China maintains a more restrictive foreign investment regime than its major trading partners, including the United States. While China became the world's top destination for foreign direct investment (FDI) in 2014, according to the United Nations Conference of Trade and Development (UNCTAD), broad sectors of the economy remain closed to foreign investors. China relies on an investment catalogue to encourage foreign investment in some sectors of the economy, while restricting or prohibiting it in many other industries. China's investment approval regime appears designed to foster economic growth but may also shield inefficient or monopolistic Chinese enterprises from competition, particularly those China is trying to cultivate as market leaders. Foreign investors cite rising costs, difficulty in finding qualified human resources, market access limitations, and unclear and inconsistent enforcement of laws and regulations as significant challenges to establishing and operating businesses in China. More than half of the U. S. companies surveyed by AmCham China in 2014 believe foreign businesses are less welcome in China than before.