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Though India and China enjoy many similarities, China has surged ahead of India in terms of economic progress. While India''s per capita income is $440 China''s per capita income stood at $990. In China, 3% of the population is below the poverty line and in India it is 30-40%. China opened up its economy before India and could therefore attract foreign investment which helped it to emerge as a ''workshop of the world''. Though India is trying to catch up with China in terms of foreign direct investment (FDI), China is way ahead. China received FDI of $52.7 billion in 2002 where as in the case of India, the figure stood at $4.67 billion. Since the opening up of the economy in 1978, China enjoyed a steady flow of FDI. China got around 40% of the total FDI that was flowing into the developing countries and became the second largest recipient of FDI in the world, next only to the US. The case gives details of how the Chinese government played a proactive role in encouraging the foreign participants and at the same time protecting the local companies. The case also compares and contracts how India and China went about attracting FDI and offers scope for a discussion on what India can do to catch up with China.