The changes in China's FDI policy since 2006 are likely to shift manufacturing FDI away from unskilled-labor-intensive production like toys.

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Since 2006, China's FDI policy has shifted towards encouraging high-tech and service-oriented industries, while reducing incentives for low-cost, labor-intensive manufacturing. This is likely to attract more investment in high-tech industries and away from industries like toy manufacturing that heavily rely on unskilled labor.

The Changes in China's FDI Policy Since 2006 Are Likely