How China can improve FDI flows

Look to Hong Kong''s rule of law, says OECD.

Ken Davies, principal administrator in the directorate for financial, fiscal and enterprise affairs at the Paris-based Organization for Economic Cooperation and Development OECD, says the best way for China to increase the amount and the quality of foreign direct investment FDI is to develop a rules-based environment in which the rule of law, individual rights and property rights are respected.

This will encourage investment and creativity, not just by foreign companies but by local ones as well,...

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