China has restrictive foreign investment regime than its major trading partners, including the United States. As it become world’s top destination for foreign direct investment (FDI) during last five years.According to the United nations Conformance for UNCTAD broad sectors of the economy remain closed to foreign investors .It encourage foreign investment in some sectors of the economy, while restricting or prohibiting it in many other industries

More than half of the U.S. companies surveyed by AmCham China in 2014 believe foreign businesses are less welcome in China than before

Over the past Fifteen years central government of china announced a series of reforms and pledges that could lead to limited improvements in the overall investment climate, both from a market access and a regulatory standpoint if they were implemented. Us government has raised concerns about China’s investment restrictions and discriminatory policies at high levels, in bilateral fora such as the U.S.-China Joint Commission on Commerce and Trade (JCCT), and the U.S.-China Strategic and Economic Dialogue (S&ED). .

US Government emphasizes the need for China to open new sectors to foreign investment, increase transparency, and improve the enforcement of existing laws to protect investors’ rights