Since the reform and opening up, various local governments in China have set up development zones and industrial parks in order to accelerate the economic development of their regions, as windows for the local economy to open up to the outside world, through tax incentives, infrastructure facilities and public services, etc. The earth has influenced the start-up of the economies of various places, creating many "economic miracles" and "wealth myths."
Marked by the trial implementation of four special economic zones in coastal areas, the large-scale investment attraction of local governments began. China's investment attraction experienced several stages, and the initial investment attraction was dominated by the introduction of foreign capital.
In recent years, China's total utilization of foreign capital has increased overall. In 2011, China's actual utilization of foreign capital exceeded US$116 billion.
Since the early 1990s, domestic investment has gradually become the leading factor in attracting investment. After more than ten years of development, the eastern coastal areas have established a basically complete export-oriented industrial system, capital accumulation has been initially completed, labor-intensive industries have gradually transformed into technology-intensive and capital-intensive industries, and local governments at all levels have taken more flexible and diverse investment invitation methods attract more capital and higher-end industries to enter the local area. Along with the "Western Development" strategy, local governments have launched investment promotion policies to attract enterprises to settle down and capital inflow to promote economic growth and narrow regional gaps.
Since 1979, China's foreign investment has continued to grow. From a numerical point of view, China’s actual use of foreign capital from 1979 to 2011 totaled US$1366.454 billion, of which, in 2011, China’s actual use of foreign capital was US$116.011 billion; from the perspective of growth, China’s actual use of foreign capital showed a growth trend from 1986 to 2011. And in these 26 years, the annual actual utilization of foreign capital has increased from 9.628 billion US dollars to 116.011 billion US dollars, an average annual increase of 13.07%.