Debate whether it is beneficial or harmful for China for foreign banks and insurance companies to enter the China market.
Foreign capital can be used to supplement the shortage of domestic construction funds without increasing the burden of national debt. Foreign investors can invest in technology and equipment in joint ventures, so the country urgently needs to buy these technologies and equipment with foreign exchange in order to run more enterprises with limited foreign exchange. Whether foreign investors can recover their capital and earn profits mainly depends on the operating efficiency of the joint venture itself to avoid the formation of national debt. (2) It is conducive to the introduction of advanced production technology and management experience. Since the success or failure of joint venture operation is directly related to the interests of foreign investors, it is possible for foreign investors to continuously provide truly advanced technology and equipment for their own interests, and work closely with Chinese joint ventures to promote the imported technology to form productive forces quickly and effectively. At the same time, since the joint venture is jointly managed by both Chinese and foreign parties, it is also convenient for China to learn from foreign management methods and experiences. (3) We can use foreign sales channels to explore the international market and expand export to earn foreign exchange. Since earning foreign exchange through export is directly related to the foreign exchange balance of the joint venture and the investment income of the foreign joint venture, the foreign joint venture may be willing to provide its original sales channels to promote its products. (4) Contribute to the management of the joint venture. Because the joint venture has Chinese participants, it can reduce the side effects caused by excessive foreign capital strength, thus maximizing benefits and eliminating disadvantages. 2. Role for foreign investors: For foreign investors, the main functions of investing in the form of establishing Sino-foreign joint ventures are as follows: (1) You can learn about the social, political and economic situation in China through the China joint venture, thus increasing your business and business knowledge in China; Through the channel of the China joint venture company, we can get convenience in China in terms of material procurement, product sales, capital and credit, so as to realize our investment intention as soon as possible. (2) Multiple benefits can be obtained. By establishing joint ventures with China partners, foreign investors can not only enjoy various preferential treatments given by China, but also get preferential treatment given by the China government to domestic enterprises, and some can also get some preferential treatments given by their own countries through joint ventures. (3) Political risks can be avoided or reduced. Because the joint venture has Chinese participants and operates together, foreign investors are worried that the psychological burden of nationalization of their investment will be much less, which is conducive to investing boldly.