Comparative Study On Foreign Direct Investment Laws And Policies Between Bangladesh And China With Prospects And Challenges

The Foreign Direct Investment policy is an effective tool that can help a developing country like Bangladesh,which has limited access to capital,attract more investment,develop a system and tax structure that is investment-friendly,improve the technical and managerial abilities of the domestic workforce,and help the economy of the country integrate with the global economy.Foreign direct investment(FDI)has had a favourable impact on China’s economy,but it has also had a negative impact on the workforce in the country and on China’s ability to become an economic behemoth on a global scale.Along with a number of other factors,the absence of foreign direct investment in Bangladesh is mostly attributable to the country’s pervasive corruption and onerous regulatory requirements.In fact that China’s policy toward foreign investment has been more favourable in recent years,and the country’s overall investment level has grown.Despite this,the whole world has seen a considerable decrease in the amount of foreign investment as a direct effect of the Covid-19 effect.However,in order to entice a greater amount of investment,Bangladesh ought to take a cue from China and institute a good FDI policy that is welcoming more foreign investment.When compared to the Bangladeshi FDI policy,which requires significant adjustments in virtually every sector of the economy.Even if many of China’s foreign direct investment regulations are already being used as templates,the country still needs to make some adjustments to its practices towards FDI policies.If China is serious about increasing the amount of foreign direct investment(FDI)it receives,the country needs to work on improving its track record of investment,its tax system,and its rules regarding the transfer of capital.On the other side,in order to enhance its policymaking,Bangladesh needs to learn from China’s FDI policies,labour structure,and dynamic export rules.In this paper,we will analyse FDI regulations as well as the link that may be established between two countries through investment policies.In the last section,there are a number of elements that can be adjusted in order to increase the amount of FDI that is received by both countries.