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etter hard infrastructure ? Sophisticated teles work ? Improved transport work ? Both internal and external Improved soft infrastructure ? Improved international connectivity ? Domestic economic reform ? WTO entry MNCs go deeper 01020304050601986 1989 1992 1995 1998 2020FDI, US$bnDifferent FDI ITrelated ?More than 60%of Taiwan’s IT production is made in China Capitalintensive industries ?Petrochemicals, semiconductor Service sectors ?Financial services, retail More FDI Source: EIU MNCs are important to China 0501001502002503003504004505001996 1997 1998 1999 2020 2020 2020 2020Exports from China, US$bn F o r e i g n i n v e s t e d D o m e s t i cSource: EIU China is important to MNCs 05101520253035404550VWDanoneNokiaProcter amp。GambleNovartisHSBC% of sales/market% o f g l o b a l s a l e s i n C h i n a % o f C h i n a m a r k e tSource: EIU, Euromonitor, pany reports, estimates. MNC attitudes to China Reporting lines ? 55% have d