The Analysis On The Trade Effect Of China's FDI

With the high speed growth of the foreign trade, the Chinese foreign direct investment (FDI) started rapidly. The relationship between the foreign trade and the FDI has become a significant theoretical and practical focus, on the mode of Chinese enterprises entering into the world market or on China's overall opening up strategy.Proceeding from China's FDI, based on the relative theory of trade and investment, the thesis, from the perspective of total volume and fields, probes into the trade effect caused by China's FDI and concludes that the integral trade effect of China's FDI is positive, that is, China's FDI promotes its trade; from the perspective of FDI industries, the primary industry, the manufacturing industry and the service industry all promote the foreign trade, but the positive effect recedes from the first to the third industry; from the motivation of FDI, the resource-oriented, technique-oriented and efficient-oriented FDI have a positive effect on the foreign trade, that is, promote the import and export. The effect that the market-oriented FDI has on the trade is determined by the characteristics of the products: the investment on final products substitute trade while investment on middle product and service promote trade.According to the distributing of China's FDI, investment in Asia and Latin countries and areas produce the positive trade effect, while the trade effect in Europe and North America is unremarkable.Besides, the thesis analyzes the problems existing in the Chinese FDI, as well as the causes of the problems, from the perspective of trade. Finally the author gives some suggestions from the angle of government, the guilds and the enterprises.