In 1996, China was one of the most attractive countries for foreign investment, ranking just after the United States. In 1998, when financial turmoil is devastating much of East Asia, China still looks like a sea of calm and prosperity. But while every large company in the world has invested in China, only a few have been successful and many have lost money. This lack of success in a presumably favorable environment raises an important question: Is China's economic strength and stability a fact, a government-orchestrated illusion, or something in-between? This book strives to provide a realistic assessment of China's economy and its potential for foreign investors. It evaluates the realities of Chinese development; assesses China's commitment to economic reform and openness, as well as its ability to keep the process under control; and evaluates the consequences on China's close neighbors.
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