TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 91

G.F. 326

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banning government departments from levying unreasonable surcharges;

streamlining import and export procedures and

boosting the efficiency of Chinese departments;

providing a domestic market for joint ventures

if their high-technology products can substitute imports;

giving autonomy to foreign enterprises to recruit Chinese workers privately without going through the state labour agencies, and to

dismiss inefficient workers; and

allowing the Chinese partners in joint ventures

more autonomy to borrow from outside to solve their cash flow problem

These changes, if implemented successfully, will certainly

improve the investment environment in China. Much will

depend upon the cooperation of the local authorities,

however.

68.

On the part of the foreign investors, to be successful in China, it is important that they study the existing Chinese laws and regulations carefully. They need to be aware of China's priorities in attracting different types of foreign investment projects, and should

make a thorough study of the business conditions as well

as the conditions of the supporting infrastructural

facilities. They should understand the behaviour of their Chinese partners and be absolutely sure that the people or organizations they are dealing with have the appropriate authority. They should reach clear agreement with all the

parties concerned and have commitments written into the contracts in absolutely unambiguous terms.

They should

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