What factors make China an unattractive target for FDI?

 (a): China’s government, controlled and made up of the communist party, heavily controls most aspects of China’s economy. While China is heavily benefitted by FDI and does generally encourage it, companies must deal with a system that requires government approval of each FDI and can change very quickly. Government approval requires a much higher capital contribution than would be expected in the U.S. FDIs must also compete with state-owned enterprises that enjoy a sizeable competitive advantage in some industries and deal with rampant commercial piracy.

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