Political analysis of china Political analysis of chinaSolut

Solution

As per the reports of country\'s statistics bureau, China’s economy in 2017 grew 6.9%, topping both the official target and growth in 2016\'s. By the end of 2017, an IMF report indicated that the Chinese credit level was large by international levels: corporate debt has increased by 165% of GDP, and household debt - though still low - has increased by 15% of GDP over the past five years. China’s debt to GDP ratio reached 257% in 2017, and the IMF predicts this ratio to increase 300% by 2020

Today China has a more restrictive foreign investment climate in comparison to it\'s major trading partners, including America. While China retains to be a top destination for foreign direct investment, numerous sectors of country\'s economy are closed to foreign investors. China continues to rely on an investment catalogue for encouraging foreign investment in certain sectors of the economy and restricting/ prohibiting investment in several others. China’s investment approval regime protects from competition inefficient and monopolistic Chinese enterprises typically state-owned enterprises (SOEs) and other national champions. Due to the discriminatory practices foreign investors are hampered, licensing barriers, selective regulatory enforcement, and the lack of an independent judiciary. Other challenges include forced technology transfer, poor intellectual property rights (IPR) enforcement, and a systemic lack of rule of law. Furthermore several China’s industrial policy targets, including the 13th Five Year Plan and Made in China 2025, inherently discriminate against foreign brands and companies by favoring local products in key high-tech and advanced manufacturing sectors.