The significance of utilizing foreign capital as an important part of the policy of opening up China to the world. Special economic zone set up in Shenzang. A relaxed policy necessary on the utilization of foreign capital. The worries of foreign investors partially due to the PRC's incomplete economic legislation. Favourable terms made by the PRC over management, profit and dividend distribution, the period and magnitude of tax reduction or even exemption etc for attracting foreign investors. (DÜI-Sen)