China: direct investment openness in comparison 2022

An investigation into China's economy and market openness based on key economic data indicates that the economy in China today is generally more open than in 2010, but less open than in many other advanced countries. The openness for inward and outward foreign direct investment (FDI) reached a score of 2.2 on a scale from zero (low openness) to ten (high openness), less than the open economy average of 6.3. Other investigated measures include: financial system development, the level of allowed and supported market competition, the development of a modern innovation system, trade openness, and portfolio investment openness.

Level of direct investment openness in China in international comparison in 2022

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Release date

October 2023

More information

Region

China

Survey time period

2022

Special properties

0=low 10=high openness

Supplementary notes

Index values range from 0 = low openness to 10 = high openness and are based on an evaluation of the respective country's foreign direct investment (FDI) conditions, considering the following aspects: fair and non-discriminatory access for foreign firms to domestic markets and freedom for domestic companies to invest abroad without restrictions or political mandates. FDI openness is a key feature of open market economies to encourage competitive markets and facilitate the global division of labor based on comparative advantages.

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