What is the influence of foreign ownership on the performance of Chinese companies?

China started to open up for foreign investments since the early 1990s. In the beginning of the paper, this process of opening up will be described, including some history of the economy of China and the evolution of the FDI flows into China. The central question afterwards will be what the influence of foreign ownership on Chinese firm’s performances is. The analysis will be applied for both listed as well as non-listed companies in China. The results show that foreign ownership does not influence the performance of listed companies. Non-listed companies with different amounts of foreign ownership do perform significantly different, where private firms which are partly or wholly foreign owned perform better than firms which are fully Chinese owned.