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China continues to rank second, only after United States. China used to be at the top of the index from 2002 to 2012 for 10 year. It dropped to number two after the United States in 2013.

As policy makers pursue a greater share of domestically driven economic growth, many firms are repositioning to serve local demand – often moving to China's inland provinces. Multinationals are finding joint ventures helpful for entering the more challenging inland business environment, where local firms are still hungry for new technologies.

The Bund and its many buildings are one of Shanghai's most important attractions, Jan 6, 2014. [Photo/Asianewsphoto]

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