Of course they want foreign investment, by enticing foreign companies to set up joint ventures in China it fast tracks their rise as a manufacturing super power. It would be quite possible that in the future those joint ventures might be "nationalised" but for the moment western companies are falling over each other to gain access to the fastest growing market in the world and the Chinese don't allow that without those companies setting up in China so by definition they are encouraging foreign investment. Even if they don't need the money they are addicted to foreign technology.
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