The Story behind the Hu-Line

In China, cities in the eastern coastal area are performing better than those in the rest according to the Chinese “Annual Report on Urban Competitiveness 2011”. The main objective of this thesis is to identify the specific location factors attracting foreign investments in the coastal and inland areas of China. In order to achieve this aim, FDI networks need to be established between Chinese and foreign cities aiming to seek powerful FDI receivers. More FDI relations would point to an existing attractive quality, or location factor, for investors. Thus, after ensure the relations between FDI and location factors, the determinant factors can be identified.