Incentives and Rules of the Game for Foreign Companies Doing Business in China

As is well known, since the start of the economic reforms, attracting foreign capital has been a key source for funding fixed assets in China and an important way for her to participate in economic globalization. In the 35 years of the reform process, however, the environmental impacts and the environmental concerns linked to the incoming of FDIs fluxes in China have been changing. New laws have been introduced and the five year plans have indicated the governement's goal through the years. A “Catalogue for the Guidance of Foreign Investment Industries” was introduced and amended several times, the last one in March 2015. The amendments seems to promote more foreign investments flowing into the environment-friendly industries. This Chapter analyses the step taken by Chinese government in the legal system in order to promote a more sustainable flux of foreign capital to China.