China is the second largest economy in the world with a GDP of US$7.8 trillion in 2008. It has been the fastest growing major nation for the past quarter century with an average annual GDP growth rate above 10%. The per capita income has grown at an average annual rate of more than 8% over the past three decades drastically reducing the poverty rate to 2.5% in 2005.

Though the global financial crisis has impacted foreign direct investment (FDI) globally, China remains an attractive destination for foreign investors due to its dynamic economy and projected GDP growth of “only” 8% in 2009. According to the Ministry of Commerce, China absorbed FDI worth US$111.17 billion in 2008, up over 27% year-on-year when global FDI dropped by 21% overall.

China is the third-largest market for US exports and a market that is significantly larger when goods that are made and sold in China by US companies operating there are included. According to the US-China Business Council (USCBC) latest survey*, 92% of respondents say the primary reason US companies invest in China is to reach the China market. The USCBC also found that 88% of respondents say they are profitable in China and 81% of companies realize profit margins in China that are the same or better than their company’s global margins.

"US-China Business Council 2008 Member Survey"