ERIC Number: ED308309
Record Type: Non-Journal
Publication Date: 1989-Jun
Reference Count: N/A
The Meaning of Foreign Investment in the Chinese Economy. Training Discussion Paper No. 39.
Castro, Claudio de Moura
As the Chinese economy opens up to the outside world, the decision to engage in joint ventures with foreign capital is among the most important national policies. Significant direct consequences of joint ventures are the influx of foreign capital, expanding exports, and employment creation. However, the great importance of joint ventures lies in their indirect effects, such as the modernization of production processes, backward linkages in quality control and modern industrial standards, management, and training. The economic results have been very favorable. Disincentives to foreign investors are excessive complications and other barriers in dealing with the government, cultural distances, and language barriers. In addition, the Chinese have imported the competitive model of poaching the best workers but not the protections against some of the model's shortcomings for training. The Chinese can learn from the problems of training policies in Western countries, including the chronic problems of school-based training that results in mismatches between training and needs and the reluctance to commit resources to training. Discussion regarding training policy should touch upon legislation reestablishing a minimum level of expenditures on training, tax rebate policies to encourage those expenditures, and reestablishment of the apprenticeship system. (YLB)
Descriptors: Adult Education, Economic Opportunities, Economic Progress, Economics, Foreign Countries, Foreign Policy, International Trade, Job Training, On the Job Training, Public Policy
ILO Publications, International Labour Office, CH-1211, Geneva 22, Switzerland.
Publication Type: Opinion Papers; Reports - Evaluative
Education Level: N/A
Authoring Institution: International Labour Office, Geneva (Switzerland).
Identifiers - Location: China