Weak Points: Some of the disadvantages for FDI in China include:
An ever-changing legal environment
Bureaucratic and administrative complexities
A lack of transparency and weak intellectual property rights protection
Production overcapacity in several sectors
Cultural differences in business practices that may be difficult for foreigners to learn and apply in new business situations
High level of corporate indebtedness
Ageing population
Underdeveloped middle management and low rate of qualified workers
The Chinese government encourages investment in the following industries or sectors:
high technology
service sector
use of renewable energies
Recycling
protection of the environment
production of equipment or new materials
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