Why did global firms not reject China's demand for investing in Chinese companies, so that China could move up the value chain?

Question

Quizplus · Accepted Answer

Global firms did not reject China's demand for investing in Chinese companies because they wanted to gain access to China's sizeable market, as well as take advantage of China's cheap labor force. Additionally, by investing in Chinese companies, global firms could also potentially partner with Chinese companies to expand their business and increase their profits. At the same time, China would buy billions of dollars' worth of U.S. government bonds that fund the U.S. budget deficit, which benefits the U.S. economy. Therefore, both options A and B are true, making D the best choice.

Why Did Global Firms Not Reject China's Demand for Investing