This assignment focuses on the impacts of foreign direct investment (FDI) in China. To the extent that this assignment will explore the factors that make China an attractive destination for foreign direct investment; will also examine the positive and negative impacts of foreign direct investment on the Chinese economy. An assessment of the positive and negative impacts of foreign direct investment on the Chinese economy will be included in this assignment, along with a discussion of corporate social responsibility (CSR). UNCTAD (2003) defines foreign direct investment as…an investment involving a long-term relationship and reflecting an enduring interest and control by a resident entity in an economy ([the] investor foreign direct investor or parent company) in an enterprise resident in an economy other than that of the foreign direct investor... (UNCTAD 2003: 231). While the above definition reflects on what foreign direct investment is; the justification for choosing to explore FDI in China is drawn from multiple studies that have also explored FDI in China. Data from Shan (2002) suggests that at the provincial level, the quality of work, the size of the market, the average wage and the level of infrastructure development make China attractive. A study that sought to explore the determinants of FDI, in China's Guangdong province, using micro-level firm data, Ng and Tuan (2003) found that quota effects, firm size and transaction costs were factors significant for the choice of location by foreign investors. The justification for choosing China is also taken from research by Fung et al., (2002) which revealed that US direct investment in China is influenced by local market demand, while Hong Kong's investment in China are influenced by labor costs. Fundamentally, a discussion of foreign direct investment requires considering globalization because economies are inextricably...... half of paper ......: University of Nottingham.Syntao, (2008). A journey to discover values: a study on sustainability reporting in China.UNCTAD (2003). World Investment Report 2003: Foreign Direct Investment Policies for Development. New York/Geneva: United Nations.Venables, T & Yueh, L (2006). The China effect. centerpiece Autumn Available from: http://cep.lse.ac.uk/pubs/download/CP208.pdf Last accessed: 04/02/2014Zhang, KH (2006) WTO, China and Asian economies. Article presented at the conference of the University of International Business and Economics (UIBE). Beijing, China, 24-25 June 2006.Zhang, Z (2004) Cross-cultural challenges when doing business in China. Singapore Management Review 26(1): 81Zheng, Y & Chen, M (2006). China moves to strengthen the social responsibility of multinational companies. Briefing Series – Issue 11. China Policy Institute: University of Nottingham.