System Under The Perspective Of China's Foreign Direct Investment (fdi) Promotes Research Mechanism

After China’s accession to the WTO，China’s outward foreign direct investment hadalready acquired a stable, high-speed growth with the augmentation of the nationaleconomic strength and the development of enterprises. After the global financial crisis in2008, China’s capital raised a hot wave of overseas mergers and acquisitions (M&A) due tobuying cheap assets. The flow of China’s outward foreign direct investment increasedrapidly in recent years, The Chinese government has issued policies, actively createenvironment to make domestic enterprises "going out". But there are many shortcomingsaround China’s outward foreign direct investment in both the macro and the micro areas.On the one hand, Chinese enterprises have little ownership advantages, industrialcompetitiveness. On the other hand, China’s institutional environment and institutionsupplies are defective. Chinese enterprises face many institutional barriers on developingtransnational investment. Removing institutional barriers and enacting economic policieswhich adapt to investment development are the top priority.The full text is divided into seven chapters which are preface, literature research onsystem, foreign direct investment experience, present situation analysis, strategic planning,promote system, conclusion and prospect.Preface introduces the problems for research. Relevant literature and theory researchshows that, system is not only the background of multinational trading and inveatmentsystem, it is crucial for outward foreign direct investment of developing countries andtransition economies. studies also shows that system affects developing countries’economic growth, economic performance, it is the endogenous variable of the foreigndirect investment.The system environment of the host country affects the market access,management and exit; the system of the home country, institutional distance between homecountry and host country influences enterprise investment; enterprise system affects theownership advantage and competitiveness. Reducing the system costs or transaction costs,improving the system supply could promote the development of outward foreign directinvestment.The experience of outward foreign direct investment from developed countries isvaluable. Britain is the earliest country of capital outputting, United States is the mostrepresentative developed economies. Japan and South Korea are close to China, theiroutward foreign direct investment are government-leading, system supports andpromotions from government make weak enterprise strong and international investment successful.China’s outward foreign direct investment has a lot of problems, these problems areattracted by China’s unique institution, system, policy which due to economic transition.The state-owned enterprisesand the central enterprises account for the largest proportion,resources and energy are the fundamental purpose of China’s outward foreign directinvestment, investments are concentrated in tax havens. The enterprise structure, industrialstructure and regional structure of China’s outward foreign direct investment are allunbalanced. China’s outward foreign direct investment is primary and many multinationalshave failed in rencent years. The Chinese government has been meddling in enterprisemanagement and the investment of state-owned enterprises, has been giving super-nationaltreatment to foreign investment. China’s capital market system has many defects, lowefficiency of government management system and investment promotion policy causedthose problems.China’s outward foreign direct investment needs to make a long term strategicplanning. Modern enterprise system reform is needed to improve state-owned enterprises’management efficiency; private economy, small and medium-sized enterprises needs moregovernment support; technology-acquisition investment needs more encourage policies toaccess to more reverse technology overflow; to reform the super-national treatment, toreduce false "detour" investment to tax havens,to invest in more developed countrieswhich are rich in science and technology. The current outward foreign direct investmentmanagement system reforming, loosening government control on investment,cooperatinginvestment policy with trade policy and foreign policy are also needed. In order to promoteoutward foreign direct investment growth, we also need to build a system of promotion,which concludes organizations system, policies system and overseas operation trackingsystem.