Why China Can Attract More FDI: An Answer to "Competitiveness in India and China: The Foreign Direct Investment Puzzle" In 2008 , a severe financial crisis has engulfed the world, plunging the economies of many countries into depression or recession. After four years, some emerging economies, such as China and India, members of the "BRICS" (acronym for Brazil, Russia, India and China, which are in a similar stage of barely advanced economic development), have first freed themselves from the effects of this financial crisis. Therefore, these emerging economies are starting to attract more attention from economists. Prime, Subrahmanyam, and Lin studied competitiveness in India and China through foreign direct investment (FDI). In “Competitiveness in India and China: the FDI puzzle,” Prime, Subrahmanyam, and Lin (2011) applied Porter's diamond theory to illustrate, in the FDI puzzle, why China can attract substantially more FDI, although China and India have many similar factors (pp. 303-333). Although I absolutely agree with their research because my experience in China confirms it, I still insist that they have not provided ample evidence to support the finding of this research. After summarizing their research paper, I will integrate the findings under three aspects: related and supporting industries, government, and opportunities. To begin with, this research has highlighted a puzzle on FDI between India and China through the analysis of the current economic condition. Prime, Subrahmanyam, and Lin (2011) stated, “Given their growth records, large markets, and reformed economic systems, both China and India appear to be equally likely candidates for foreign direct investment. However, China has received substantially more foreign direct investment" (p 303).What's...... middle of paper......a. Journal of Asia Entrepreneurship and Sustainability, 3(2), 60-80. Retrieved from http://www.asiaentrepreneurshipjournal.com/AJESIII2Swapna.pdfSweeney, M. (2010). Foreign direct investment in India and China: Creating a balanced regime in a globalized economy. Cornell International Law Journal, 43, 207-248. Retrieved from http://www.lawschool.cornell.edu/research/ilj/upload/sweeney.pdfWei, W. (2005). China and India: any difference in FDI performance? Journal of Asian Economics, 16(4), 719-736. doi:10.1016/j.asieco.2005.06.004World Bank. (2012). World Development Indicators and Global Development Finance, annual data for multiple years, 242 countries. Retrieved from http://databank.worldbank.orgZheng, P. (2009). A comparison of the determinants of FDI in China and India. Thunderbird International Business Review, 51(3), 263-279. doi:10.1002/even.20264