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    China FDI

    Better FDI? The Shanghai Pilot Free Trade Zone is not the answer

    December 20, 2014

    “Having attracted massive amounts of foreign direct investment (FDI) over the past three decades, in recent years China has been trying to cope with over-investment and the need to innovate and move up the technology ladder to capture more of the value-added earned by its exports. This means attracting more capital-intensive, high-tech FDI, including R&D centres, as the country moves away from increasingly expensive labour-intensive export manufacturing. It also needs to encourage inward investment in services to help its economic re-balancing effort.”

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