An Analysis of Southeast Asian Firms'''' Investment in China

I.IntroductionChinahasbeenverysuccessfulinattractingforeigndirectinvestment(FDI)sinceitstartedtopracticetheopendoorpolicyintheearly1980s.Inthepastdecade,theaverageannualgrowthrateofChinasutilizedFDIwasover50percent.Duringthesameperiod,overone-thirdoftheworldsFDIflowingtodevelopingcountrieswasinvestedinChina.In2002,ChinasurpassedtheUnitedStatesintermsofattractingFDI,andstoodinthefirstpositionamongtherecipientsofFDI.EconomiccooperationbetweenChinaandSoutheastAsiancountriesandterritorie…     

China＇s Foreign Trade and Investment： An Overview and Analysis

This study discusses the current development of China‘s trade and investment and their related issues. It presents data consistent with the hypothesis that Chinese firms try, to overcome market impediments, such as capital account inconvertibility and differential tax treatment between foreign and domestic firms, through trade and investment. Various challenges and opportunities related to China‘s future trade and investment are also discussed.     

Japanese Enterprises＇ Investment in China＇s Software Industry

I. Overall Conditions of Investment by Japanese Enterprises in China Starting from the 1980s, investment by Japanese enterprises in China has been growing continuously. In 2004, Japanese investors established 3454 firms in China, 6.15 percent more than in 2003. Contractual foreign investment amounted to US$9.162bn, 15.17 percent up from 2003, whereas the foreign investment actually used was US$5.452bn, up by 7.86 percent from 2003. In 2004, the number of newly established Japanese enterp…     

Analysis of the Misunderstanding in Investment Project Economic Appraisal Theory

The internal rate of return （IRR） is often used as the project marginal revenue to ascertain project optimal scale and gain the minimum attractive rate of return （MARR） in investment project economic appraisal theory. This paper proves that the internal rate of return doesn＇t accord with the meaning of marginal revenue from the point of view of theory and practice and only net present value ratio （NPVR） and net invest-profit rate （N/K） can accord with the meaning of marginal revenue. This is also the reason that IRR ranking method can＇t guarantee the selection result is optimum when capital rationing doesn＇t divide up the project. Therefore other indicators ranking methods except NPVR and N/K, all lack theory foundation and are approximate methods in practical application.     

Uncertainty and Corporate investment： An Empirical Analysis of China＇s Manufacturing Firms

With the measurement of volatility of a firm＇s stock returns uncertainty, the paper examines the investment behavior of China＇s manufacturing firms over the period of 1998-2003, and studies the relationship between uncertainty and corporate investment by using the 2SLS re, gression method. The empirical results indicate that there are significantly positive relationships between total uncertainty and investment, and market uncertainty and investment, but the relationship between firm-specific uncertainty and investment is not significantly positive.     

China＇s Excessive Investment

China＇ s economy has witnessed serious excessive investment over the past 5 years, mainly in the infrastructure and real estate. Excessive investment has adverse impacts on both economic growth and macroeconomic stability. The main causes of this excessive investment are inappropriate growth strategies, low interest rates and weak constraints on government investment expenditure. To effectively control excessive investment, China needs to adjust its growth strategy, to speed up the process of interest rate marketization, and reform the existing public expenditure system.     

Analysis of the Adjustment of China＇s Fiscal Policy in 2005

The prudent fiscal policy adopted in 2005 is the result of adopting a series of measures to strengthen macro control in recent years. The process of implementation will be gradual.During this period, pushing forward reforms is the main focus of all the measures. Tax reform, social security system reform and rural reform will need the most emphasis.     

An Analysis and Forecast of China‘s Economy in 2002—2003

Supported by strong domestic demand, China's economy maintained rapid growth through recent years. In 2002, the first year after China's WTO entry, growth has exceeded all expectations. GDP in the first three quarters of 2002 reached 7.1682 trillion yuan, up 7.9 percent over the same period of last year. This outcome is attributable to a number of factors including the global     

An Analysis of State-Owned Banks＇ Behavior in NPL Disposition

This paper examines the phenomenon whereby state-owned banks in China tend to not only reduce their non-performing loans(NPLs ) through accepting settled assets, but also overvalue and delay liquidating settled assets. The results imply that the state-owned banks exhibit an obvious book loss aversion behavior when disposing their NPLs, i.e. they minimize book loss and hide real credit loss by settling their NPLs with overvalued assets. This paper suggests that this results mainly from improper regulations, weak financial strength, and over-restrictions on NPL disposition. Since introducing a valuation allowance on settled assets, as suggested by the regulatory body, will not produce the desired effect, this paper proposes that a performance measurement and penalty mechanism based on non-performin gassets instead of NPLs will change the banks‘ attitude towards NPL-asset settlement. In addition, a new internal control method governing the entire process from settlement to liquidation is also suggested.     

The Analysis on the Development of China＇s Foreign Direct Investment

Foreign Direct Investment （FDI） is one of the most important ways that China makes use of the foreign capital, an important path that Chinese enterprises participate in the international competition deeply and also an important means that our enterprises promote their competitive ability. Absolutely, our current foreign direct investment is still in the primary stage, short in quantity, and small in scale. This kind of situation is quite inappropriate to China＇s international positions and management level. The main problems existing in our foreign direct investment are analyzed in this paper, the relevant counter measures are also put forward.     

Analysis of South Korea’s Direct Investment in China

I.General Situation of South Korea’sDirect Investment in ChinaSouth Korea’s investment in China has increased dramatically since1992,when the twocountries formallyestablished diplomatic relations.According to China’s statistics,in1992,South Korea’s direct investment in China was only US$119million.By2002,it reachedUS$2.721billion–a26.78percent annual growth on average.This was much higher thantheaverageannual growth ofinvestmentby other countries in China,which stood at10.87 pe…     

Comparative Analysis of Capital Productivity in China＇s High-Tech Industries

While labor productivity is a topic of constant debate and has been studied extensively, far less attention has been devoted to the question of capital productivity. Productive use of physical capital is an important source of economic growth and investment return. This paper presents a comparative study of capital productivity in China‘s high-tech industry. Using a version of the perpetual inventory method (PIM), new estimates have been made of the physical capital stock by sector. Capital productivity in China‘s high-tech industry is higher than in total manufacturing, but the gap between them has been shrinking. Comparison with high-tech industries in the US., highlights that China‘s high-tech industries could play a more important role in the growth of manufacturing and the whole economy.     

What＇s So Special about China＇s Producer Services？ An Input-output Analysis

In the present study, five stylized facts about China ＂s producer services are established through international, intersectoral and intertemporal comparisons based on input --output tables. First, the overall service input ratio is the lowest in all the sample economies. Second, most producer services are supplied by the traditional labor-intensive sectors. Third, manufacturing is the biggest user of producer services, and service industry is the second, while the opposite is true for most of the other sample economies. Fourth, unlike other economies, China ＂s ＂R＆D＂ is characterized more by consumer services than producer services. Fifth, China has fairly lower service input ratios in almost all the industries. The backward and forward linkages coefficients are both smaller for ＂real estate activities＂ and ＂finance and insurance. ＂＂ Policy reform should focus not only on specific producer services but also on reducing obstacles that are inhibiting the balanced development of diverse producer services that will help China to optimize its economic structure.     

Analysis of China＇s Overheated Economy and Macroeconomic Policy Options

Based on macroeconomic analysis since 2003, this article holds mat a trena towaras overheating has surfaced in China‘s economy. China‘s rapid economic expansion has affected the quality of its growth, with rising material and energy consumption and imbalanced economic structure as the main manifestations. Regarding macroeconomic policy options in 2004, decision-makers should shift the policy focus from control of deflation to prevention of inflation; the pace of economic growth should be properly set; a balance between consumption and investment should be strengthened by controlling excessive expansion of investment, and industrial restructuring should be conducted in a coordinated manner on the basis of properly controlling the overly rapid indastrial growth; policies should be continued to boost exports and sustainable growth of foreign investment; and more efforts should be made to accelerate the change in the mode of economic growth.     

Analysis of Strategies that Shenyang City Attracts the Foreign Investment

With knowing gradually well to Chinese market environment and intensive realization of Chinese market potential and importance, foreign businessmen begin to invest in China extensively and systematically. In the face of investment trend like this, Shenyang city should also exert its own advantages actively and cater to the investment state of foreign businessmen. This paper explains the investment environment of Shenyang city and analyzes the strategies that should be adopted mainly.     

Life-insurance Efficiency in China： A Comparison of Foreign and Domestic Firms

The Chinese life-insurance industry has experienced major structural changes in recent years, primarily because of increasing demand and the entry of foreign insurers. Although the market is clearly booming, the efficiency of its growth and development is unclear. In this paper, we evaluate the efficiency of life insurers operating in China and compare foreign firms with domestic firms. We find that foreign insurers have not brought efficiency into the Chinese market, and that the market is still dominated by domestic giants. However, the gap between foreign insurers and domestic insurers is narrowing. After testing hypotheses regarding scale economy, technical progress andpotential improvements, we discuss several issues＇ of importance to life insurers, market investors and government regulators.     

Efficiency Analysis of China＇s Commercial Banks Based on DEA： Negative Output Investigation

This paper focuses on the shortcomings of the extensively-used method of DEA in evaluating the efficiency of bank, i.e., the DEA method cannot make further comparisons to the efficient units and it does not take into account the situation of negative input or output value. We use the BCC model in DEA to measure the fourteen Chinese commercial banks＇ efficiency in 1999. Since BCC model has the property of transformation invariance, the problem of negative input or output value is thus resolved. We also use the super-efficiency DEA model to rank all the efficient units completely.     

Review of the EU＇s Preliminary Assessment of China＇s Market Economy Status

In June 2004, the European Union (EU) made a decision on its preliminary assessment of China‘s market economy status (MES). After seriously studying the EU‘s preliminary assessment report, the Institute of Economic and Resources Management of Beijing Normal University made a review. We hold that the decision on the assessment fails to be fair and objective and is undermined by incorrect understanding and logical contradictions. However, the decision has still left some leeway for China‘s improvement and China needs to speed up in improving its market economy regime.