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In the past, China made investments and exports its key engines of economic growth. Though this model successfully transformed China into a major economic power, it has also led to new problems in future economic development. Therefore, China issued several pieces of legislation in 2007 that impose a severe impact on foreign investment, particularly for Taiwanese companies operating in China. China changing investment environment is changing. This report analyzes the economic problems that China is faced with, the policies made by the Chinese government to solve the problems, and impact of these changes on foreign companies operating in China.
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