ECONOMIC DEVELOPMENT STRATEGY FOR CHINESE COASTAL AREAS AND U.S. INVESTMENT IN CHINA Chen Baosen (7) Three issues are dealt with in this essay: the role of the SEZs and coastal areas in the Chinese modernization drive; the present U.S. investment in China; and the Chinese efforts in improving its investment environment. The author's conclusion is that the economic development strategy recently adopted by the Chinese government for the coastal areas has provided U.S. companies with a good opportunity for direct investment.