China is an unexplored market with considerable growth option and potential because of a number of factors like the world’s biggest internal market with 1.3 billion potential customers, fast growing market, low labour costs, and new opportunities, like in Sichuan province.
China has not been influenced by the financial crisis and has the ‘groundwork’ for low cost production. China had earlier made it known that companies with strong production capacity will not be encouraged which means new scope for start-ups.
China encourages investments in technology, equipment production, services sectors, clean production, use of renewable energies and environmental protection. It also has a policy of restrict foreign investment in resource-intensive and highly-polluting industries.
It also intends to discourage foreign investment where it wants to develop its own industries into multinational corporations, sectors that are keys to social stability as well as currency, real estate, or asset speculation oriented investments.