China and India are the two emerging economies of the world. As of 2019, China and India is 2nd and 5th largest country of the world, respectively in nominal basis. On PPP basis, China is at 1st and India is at 3rd place. Both countries together share 19.46% and 27.18% of total global wealth in nominal and PPP terms, respectively. Among Asian countries, China and India together contribute more than half of Asia's GDP. China has been amongst the world’s largest recipient countries of Foreign Direct Investment (FDI) since the early 1990s. In 2002, the first year after the country’s accession to the World Trade Organisation, it for the first time surpassed the USA to become the world’s largest FDI recipient- with the actual amount of FDI accounting for around 10% of the world total. Concerned analysts generally predict that further increases in FDI in China are most likely in the years to come, amid the increasing integration of the country into the world market. Thus, proper assessment of the role has played in China’s economic developments are clearly of widespread policy importance.