The implementation of foreign direct investment (FDI) policies in Chin
a shows that domestic considerations were not the only factors shaping
the course of China's opening up to the world economy. Foreign respon
se was often taken into account as the Chinese government felt its way
through the process of reform. Focusing on Japanese FDI in China, thi
s article explores the liberalization of China's FDI regime and traces
the impact of China's negotiations with and accommodation to pressure
from foreign business and governments.