China - the foreign investment framework

Article Abstract:

Foreign investment in China is far from ideal with only $1.8 billion invested by 1983. The Chinese expected $20 billion of foreign investment by 1985 obliging them to introduce changes in trade regulations to make investing in China less risky. The most common type of enterprise in which foreigners are involved is the 'equity joint venture', in which the ratio between the Chinese and foreign ownership is normally 51:49. This kind of enterprise can borrow capital from the Bank of China, as well as from abroad, although Chinese legislation provides no guarantees to foreign lenders. A major complaint of foreign investors in China is that they have to pay 150 percent above the average Chinese salary and have little negotiation power when dealing with labor.

China, Economic aspects, International trade regulation

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The ITT-CGE joint venture agreement

Article Abstract:

Late in July 1986 the French government approved a joint venture proposal between American International Telephone and Telegraph (ITT) and French state-owned Compagnie Generale D'Electricite (CGE), forming the world's second biggest telecommunications equipment company. The terms of the ITT-CGE deal are described. The magnitude of the step for ITT, and the potential stakes and risk for the French government are also discussed. The joint venture's success will depend upon the ability to integrate operations without financial problems, and upon any changes associated with competition.

United States, Europe, Telecommunications services industry, Telecommunications industry, International business enterprises, Multinational corporations, ITT Corp., Foreign licensing agreements, Compagnie Generale d'Electricite

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Foreign investors lukewarm on Hungary

Article Abstract:

Since 1972, Hungary has unsuccessfully tried to attract foreign investors. The reasons for failure are the equity requirements that give the Hungarian government a majority position in shareholding, a shortage of labor, and expensive facilities. Investment has reached only $9 million in 1984, with most of it represented by services such as hotel ventures and casino management. West Germans and Australians are the largest foreign investors in Hungary.

Hungary

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