Foreign investment promotes economic growth of china

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a. One of Chinese firm listed in the Fortune 500 is Shanghai Automotive Industry Corporation (SAIC), which is a car manufacturing group with a number of sino-foreign joint ventures. Foreign investment is well agreed as a contributor to Chinese economic reform. Discuss how foreign investment promotes economic growth of China.

b. State-owned banks are also an important sector listed in the Fortune 500. However, they were seriously troubled with a large amount of nonperforming loans in mid-1990s. Explain why.

c. A few decades ago, most SOEs were struggling to improve their profitability but the situation was only improved by the launch of "Grasp the large, let go of the Small" policy. Explain how large, medium and small SOEs were reformed under this policy.

Reference no: EM132417923

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