Research On The Policy Evolution Of Chinese Foreign Investment On Retail Industry

With the progress of reform and opening-up, the retail industry is more and more inclined to become international. Thus, it is inevitable for the retail industry to attract foreign investments as it opens to the outside world. The entry of foreign capital has made a great impact on the commercial retail system being closed and lagged behind for a long period. Meanwhile, it has aroused significant changes in the retail industry in China and stimulated its development dramatically. The paper studies the Evolution of China's policies of foreign investment attraction in the retail industry during recent twenty years. Policy selection and evolution in different stages have been analyzed as well as the effects and experiences. In addition, policy suggestions have been proposed for the healthy development of China's retail industry in the future. It is expected that the paper can further improve policies on the development of the retail industry so as to be a good reference to create a favorable environment for domestic retail enterprises in China to integrate into the global market and participate in international competitions.First of all, the paper analyzes the backgrounds of policies introduced in different stages and explains their evolution and development. Then a comprehensive analysis and illustration is made on the performance of the policies and their influences on the retail industry. At last, based on the previous analysis, the paper makes an overall evaluation on the development of policies to attract foreign investments in the retail industry during recent twenty years. which gives recommendations to the retail industry in China for future developments.In this paper, it is believed that Chinese government's policies to open domestic retail industry to the world and attract foreign investments have led to results similar to the adoption of the great strategy of reform and opening-up. On the one hand, challenges have been brought about, which strike part of domestic retail industry severely. Foreign capital takes the leading role in large supermarkets and some enterprises are forced to go bankrupt or close down. On the other hand, opportunities have been created as well. Chinese retail enterprises have learnt advanced management experiences and marketing modes and grown up in the"dances with wolves", which has improved the development of the whole retail industry and benefited the people's livelihood. If a vaster space can be exploited for the survival and development of domestic retail enterprises in China, provided that experiences and lessons can be well summarized in respect of policies on foreign investments in retail during recent twenty years and that policies can be optimized while suitable encouraging and supporting measures can be adopted. Therefore, it will not be so far away from the appearance of renowned brands such as Wal-Mart and Carrefour and leading enterprises in the future.