How has China encouraged trade and foreign investment?

• A. By increasing tariffs on exports
• B. By lowering taxes and regulations
• C. By restricting foreign ownership
• D. By limiting technology imports

Answer: (B)

China has encouraged trade and foreign investment primarily by lowering taxes and regulations. This approach has made it more attractive for foreign companies to enter the Chinese market and has facilitated increased bilateral trade. The reduction of tariffs and other trade barriers, along with business tax incentives and simplified regulatory procedures, allows foreign firms to operate more freely and efficiently within the country.

Additionally, these measures create a more competitive environment, essential for integration into the global economy and attracting foreign direct investment. By fostering a business-friendly atmosphere, China has effectively positioned itself as a key player in international trade and has significantly boosted its economy through these policies.