During decades reforming and opening since 1978, China has developed at a supernormal speed in absorbing foreign investment. In the year of 2003, China attracted 41081 foreign-invested projects with contracted foreign capital of US$116.90 billion and total amount of foreign capital actually utilized was US$56.14 billion. And the accumulative total of foreign capital actually utilized between 1979 and 2003 was as high as US$679.558 billion(numbers used here are cited from China statistics Year Book 2004). China has turned into a country that attracted the most foreign investment, which should be owed to the favorable investment environment for investors from all over the world. China offered increasingly optimized Chinese macro-economic environment, marketization of economy and other measurements to attract foreign investment to produce great return to foreign investors from all over the world.

China 's economy has been keeping a high-speed development with an average increase speed of two -digits , and has topped the countries all over the world for 25 years. Since the latter period of the 1990s, the increasing speed though to certain extent dropped, still reached 7-8% under the circumstance that the global economy increase slowed down. The Gross Domestic Product in 1997 was RMB7, 446.3 billion yuan, RMB7, 939.6 billion yuan in 1998, RMB8.205.4 billion yuan 1999, RMB8.940.4 billion yuan 2000, RMB9, 593.3 billion yuan in 2001, RMB 10,517.23 billion yuan in 2002, and RMB 11,725.19 billion yuan in 2003. China has become the sixth largest economic entity of the world.

The people's living standard has been improving with a big margin and the problem of providing them with adequate food and clothing was settled, and some places and people have already took the lead in accession into the middling advanced level. The Gross Domestic Product per capita was RMB 9101 in 2003.In the year of 2003, people in Shanghai had a GDP per Capita as high as RMB 48672 yuan, and that of Beijing is also as great as RMB 32061 yuan.

Viewing at the national economy increase and development prospects, China also behaved tremendously well. The economic rate of increase during 1998-2002 was about 7.5% and 9.3% in 2003, which was the highest in the world. Meanwhile, the macro-economic environment was fairly stable. The government has, in recent years, energetically taken positive financial policies to stabilize exchange rate so as to promote the development of economy.

From the perspective of essential factors of production, China 's production cost consisting of labor force, raw materials and service and so on still possess global competitiveness. The cost of wage is enormously under that of the developed countries and as well under that of most developing countries.

China also increasingly elevated its economic opening degree. The total volume of export and import amounts in 2003 RMB 7048.35 billion yuan. Of which there was RMB 36287.9 billion yuan of export, even more than that in many developed market economy countries.