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Question 1: Outline at least four essential elements for attracting FDI in the Yangtze Delta Basin.
Infrastructure
In Yangtze Delta Basin, there are lots of metropolises which are not very far from each other. The well-developed infrastructure such as high speed railroads and freeways connected those cities even closer. With the convenient transportation, it’s easy for foreign companies to outsource their productions to industrial zones like SIP or SND and to deliver finished goods to ports like Shanghai. Additionally, established power stations and water plants guarantee a reliable utility source which is also a benefit for foreign companies so that they don’t have to concern the capital expenditure in basic utility supply.
Policy
Secondly, the policies promoted by Chinese government are appealing to FDI. Specifically, the preferential tax rate is very attractive policies because if foreign companies intend to develop Asian market, they have to seek an appropriate area as manufacturing hub to support the target market. Thus, lower tax bracket will be an important criteria in their decision-making. Other policies like one-stop set-up service are also in favour of FDI. One concern regarding investing in China is bureaucratic delay. The one-stop service not only provides convenience to FDI but also enhance the image of the government in transparency and efficiency.
Sufficient local labor force
Large population