| On the basis of Contemporary Investment Theory and Open-Economic Theory, and absorbing the basic FDI theories of developed and developing countries, the study constitutes a FDI theory framework of developing countries. Then, the study analyzes the general development of the globe enterprises' FDI, investigates the relative experiences of enterprises' FDI in foreign developed countries, and verifies the theory framework on the aspect of the Chinese enterprises' FDI, and authentic analyzes the micro and macro-performances and effectiveness of Chinese enterprises' FDI. On the basis of that, the study finally finds the causes of poor performances of Chinese enterprises' FDI and points out the strategic targets, developing strategies and corresponding political countermeasures and suggestions.The main conclusions are as follows:1. The strategic decision of enterprises' FDI in developing countries is to pursue the long- term dynamic maximized aggregate profit of internal and external operation on the prerequisite of suiting the dynamic maximized interest of governments. When making a FDI strategy of enterprises in developing counties, they will consider not only the short-term and long-term equilibrium of enterprises' profit but also the co-ordinate of enterprises' profit and government's interest. Through the theoretical and practical investigation of FDI theories in developed and developing countries, the study observes the following elements to influence the enterprises' FDI in the developing counties, such as the differences of domestic and foreign cost, the coverage of market space, as well as some non-economic elements, such as market space preferences, technology acquisition. That governments plays the most important role in developing countries is to pursue the enterprises long-term dynamic maximized aggregate profit on the prerequisite of suiting the dynamic maximized interest of governments.2. The Chinese enterprises' FDI institution is a typical government-oriented investment institution. And the changes of Chinese enterprises' FDI institution are closely related with Chinese economic development. However, clearly, Chinese enterprises' FDI institution change is lagging behind the transforms of Chinese whole economic institution. Furthermore, the processing of Chinese enterprises' FDI institution change is also the formation of government-oriented FDI institution and each enormous change combines the government's promotion. In the government-oriented FDI institution, because of the dominance enterprises which government can allocate are state-owned enterprises, which are lack of property right reform as well as incomplete-establishment of modem enterprises' institution, Chinese enterprises engaged in FDI are lack of positive and speed in the FDI institutional changes and enterprises institutional reforms. Among which, government almost becomes the only participant, then the change of Chinese enterprises' FDI institution always have a non-equilibrium condition.3. Chinese enterprises' FDI have distinctive characteristics on the following aspects: the choices of investment body, the emergences of investment industry and the strategies of location, the coverage of investment industry and the strategies of investment entrance. Form the systems of ownerships, the most internal parent enterprises' which invest in foreign countries are state-ownedenterprises. Most of these are financially strong and rank some certain monopoly status in the domestic industry. Though the motivations of them are diversified, generally speaking, the main target of Chinese enterprises' FDI are occupying market space to learn advanced technology and management, not making profit. There are two features of Chinese enterprises' FDI location choices. On one hand, Chinese enterprises' FDI centralizes in the nearby regions and countries, especially in HongKong, Macao and Asian countries, which are of the cultural similarities with China. On the other hand, it prefers to the American and European regions. And among the investment industries, the service trade industry projects accounts for most percentage of the whole, then is manufacturing and processing industry. Chinese enterprises' FDI often use the business way of establishment, but in recent years, the merger way in host countries is also increasing.4. In the economic transformation period, the macro and micro performances and effectiveness of Chinese enterprises FDI are not good respectively, considering the micro-performances of them, and they are comparatively poor in the year of 1980 to 2003 in general. According to the survey of specialists in the Developing and research center of the State Council, 67% Chinese enterprises engaged in investment in foreign countries gain non-profit or pay for a loss. It is indicated by some statistics that more than 50 % of those enterprises in coastal regions are not successful. And form the conclusion of the macro-performances of authentic proof, the long-term and short-term effectiveness of Chinese enterprises' FDI are not notable to develop national macro-economy and to increase export capability. But it has striking negative influence to foreign exchanges reserves in short-term. Similarly, the short-term and long-term influences are not notable to the domestic investment, the flow of FDI, and technology progress etc. Therefore, the macro -performances of Chinese enterprises' FDI are not remarkable.5. The causes of poor performances are diversified, and the most profound reasons are improper arrangement of the institution, dislocation administration. The direct causes of poor performances of Chinese enterprises' FDI are determined by the smallest investment scale; the largest investment fluctuation; the impediment financial channel; the biggest investment risks and the lack of investment experiences, etc. And the profound causes are dislocation of investment body and inappropriate handling government administration. We need more information to enhance the scientific and accurate of institution. The Chinese FDI institution is a kind of typical government-oriented FDI institution. In most cases, with the guidance of government, most of the Chinese enterprises FDI is an action of emotion, not a mature and reasonable one which bases on the needs of those own strategic development and situation. Under such circumstances, it must arise the problem of non-coordinate encouragement. On the other side, with the ultimate decision-making by the government to the government-promoted investment and the relative with foreign market environments, the decisions result in inaccuracy. So we need more information to enhance the scientific and accurate of decision-making, but it is hard to gather the information by the government, even it can be solved, the cost will be very expensive. Therefore, the improper institutional arrangements of current Chinese enterprises' FDI disobey the standard of effectively utilization principle, and we need more information to enhance the scientific and accurate of institution. And moreover, the Chinese state-owned enterprises which are the main body engaged in FDI really have not established modern institution, and the managements are functional dislocation, the confusions of government and enterprises are still existed, the managers are short of intellectuals to be entrepreneurs, so the problem of un-coordinate encouragement of state-owned enterprises is more serious. In addition, in the activities of Chinese enterprises' FDI, our government always inappropriate handles with some matters, and this hinders the virtuous development of Chinese enterprises' FDI to a great extent.6. The strategic targets of Chinese enterprises' FDI should be the following-mentioned blueprints: making full use of resource effect to realize the advantageous resources supplementation; ample utilizing technology effectiveness to upgrade national technological advancement; harmoniously coordinating their macro- and micro- effectiveness to enhance the Chinese enterprises' FDI sustainable development as well as to promote the overall, coordinated sustainable development of Chinese economy.The innovations of the study:This study delves in systematically and comprehensively the subject of Chinese enterprises' FDI. It has the following innovations.1. First, it presents the profound perceptions on the economic profits, the various risks and government actions to be faced by china's direct investments in foreign countries and creates the comprehensive motivation model for china's direct investments in foreign countries. Besides it discovers that fee enterprises in the developing countries made their policies on investments to foreign countries, predicating on maximizing the national interests and perusing the long-term maximized dynamic of the total-profits of the enterprises' external and domestic operations.2. Secondly, it examines systematically China's national policies on direct investments to foreign countries and their changes over times. In addition, it analyzes the interrelations between China's national policies on direct investments to foreign eounbies and its economic systems. Based on the profound analysis of Chinese enterprises' FDI, it reveals that the essential factor restricting the direct investments to foreign countries lies in the inappropriate arrangement of related systems.3. Thirdly, it proposes the principles, the specific contents and approaches concerning the accomplishment evaluation on Chinese enterprises' FDL By using the Unit algebraic equation solution test, Co-integration test, Maladjustment model, Granger test methods, it examines the micro and macro accomplishments of Chinese enterprises' FDI.The proposed policies on Chinese FDI:1. Introducing the changes in the duty and roles of the government, developing the notion of serving and sfrengthening the enterprise's activeness in direct investments to foreign countries. The local government should transform the present role target, realizing that the government itself cannot replace the enterprise so as to decide its policies on direct investments to foreign countries. Rather, the government should focus it efforts on providing better service and economizing the cost in direct investments to foreign countries. Besides, while inducing (he enterprises to developing direct investments to foreign countries, the government should rely mainly on the economic measures rather than the administrative measures. It should entitle die enterprises to make their own decisions, transforming the government-dominating model of direct investments to foreign countries into the enterprise-dominating one.2. Developing the entity with international competitiveness devoted to direct external investments. For one thing, it should be kept in mind mat due to the comprehensive circumstances in china, it is the state-owned enterprises that can dominate the entities devoted to direct external investments. Therefore, it is of essential importance to reform the state-owned enterprises. Presently, it is advisable that the reform on the state-owned enterprises with international businesses be pushed on and the contemporary enterprise systems be established as soon as possible, solving the problem of the internal incompatibility of stimulating in direct external investments. For another, the locally-owned enterprises should be urged to "go out", mat is to enter the international market The government should strive to provide a fak environment for the locally- owned enterprises, helping mem to enlarge the scales, to strengthen the management and to form the pattern of combining product, brand and capital operation. Therefore the diversity of entities devoted to direct external investments can come into existence. Finally, it is suggested that the international competitiveness of Chinese enterprises be enhanced, the creation of enterprises with extra-large scale should be speed and the balanced developments of the large, medium and small enterprises should be realized.3. Strengthening the effective supervision on the enterprises' direct investments to foreign countries, beginning with the organizing work and the systems. First, a complete supervising organization should be set up for the following two purposes. For one thing, it calls for the special supervising organization directed at overseas investments in response to the chaotic management presently. For another, the organization related to the auditing and evaluation of overseas investments should be erected so as to prevent the losses of state properties resulted from the direct external investments and to strengthen the accomplishment evaluation on it. Secondly, the construction of supervision systems should be strengthened. Above all, the construction of laws related to direct external investments should be reinforced, formulating such a comprehensive law as "the law of overseas investments by Chinese enterprises", which is aimed at protecting, encouraging and supervising overseas investments. On top of this, it needs to formulate a series of other related laws like " the detailed principles of overseas investments", "the supervising items for theenterprises involved in the overseas investments" and other regulations so as to improve the laws of direct external investments. In addition, the separate supervising systems should be established, aimed at different investing intention. For example, it calls for separate supervision on the enterprises targeting at developing the overseas market and making profits and those targeting at absorbing information and technology.4. Providing more financial help for Chinese enterprises' FDI, creating the economic levers for direct external investments and a financial platform for the enterprises involved in direct external investments. With the Importing and Exporting bank of China and Bank of China as the solid foundation, the policies and financial systems concerning improving the direct external investments should be created. Particularly, in order to obtain the technological impacts, it is advisable to provide substantial financial help for the enterprises involved in direct external investments, which are aimed at absorbing experiences in technology and management. It is suggested that the pattern of direct external investments, in which the national capitals has introduced the private capitals, should be established. Besides, the government needs to formulate such policies as encouraging and supporting the large international enterprises to set up branch financial companies in the countries where they can be free from yuti taxition or enjoy tax favors. These companies are supposed to deal with the collocation of the international capital, to avoid or reduce the taxes on the external investments and thus provide the low-cost capital for the branch companies. Besides, the government should urge China's international banks to cooperate with international enterprises and set up branch banks in countries which hold many branch companies of the international enterprises in China, providing better service for the Chinese enterprises there.5. Establishing the administrating systems with regard to the risks of Chinese enterprises' FDI. First, the government should have a clear idea about the relations between china and other countries in terms of foreign trade and economy and promote the economic status of our nation. It needs to establish the early warning system against investing risks in various countries, publishing report on the investing environment in foreign countries regularly in order to prevent the political risks in direct external investments. Secondly, the government needs to create a information platform for direct external investments, providing instructive and valuable information for the administrative staff in the enterprises involved in direct external investments and reducing operating risks resulted from misinformed. Thirdly, it calls for the insurance and finance systems for direct external investments so as to minimize the various risks confronted by the enterprises involved in direct external investments, fa addition, it needs to promote the construction of supervision systems against risks in enterprises, strengthening the enterprises' power to identify, predict, supervise and control risks.
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