This book examines China's foreign direct investment inflows as a function of the imperfections in their economy.The book is about China's integration in the world economy. It proposes a radically different perspective on this topic. Most economists view China's large foreign direct investment (FDI) inflows as a result of China's economic success. This book views the same phenomenon as a function of the imperfections in the Chinese economic system. It uses economic theory to explain FDI to a greater extent than previous studies on the same topic. The book also presents comparative FDI data of a number countries while most the previous studies only contained data on China.The book is about China's integration in the world economy. It proposes a radically different perspective on this topic. Most economists view China's large foreign direct investment (FDI) inflows as a result of China's economic success. This book views the same phenomenon as a function of the imperfections in the Chinese economic system. It uses economic theory to explain FDI to a greater extent than previous studies on the same topic. The book also presents comparative FDI data of a number countries while most the previous studies only contained data on China.This book about China's integration into the world economy proposes a radically different perspective. Most economists view China's large foreign direct investment (FDI) inflows as the result of China's economic success. This study views the same phenomenon as a function of the imperfections in the Chinese economic system. It uses economic theory to explain FDI to a greater extent than previous studies on the same topic. It also presents comparative FDI data of additional countries, making it more comprehensive than previous studies which focused only on China.List of tables and figures; List of abbreviations; Synopsis of the book; Preface; 1. Introduction; 2. An analytical framework; 3. Problems in China's corporate sector; 4. Constraints on l39