The Study Of FDI Of Chinese Medium And Small Business

Since the opening-up of China, more and more Chinese business began to employ FDI,especially after China acceded to the WTO. During this process, the middle and smallbusiness (MSB) play a big role. But with this reality, many person still doubt----whetherthe MSB should invest outward? Whether they own the strength to manage thecomplicated multinational environment? What a condition does the FDI of MSB show now?And how can the MSB managed to succeed in this process? I try to give my answer in thisarticle. This article based on the developing countries related foreign direct investment theoriesand the experience of those countries which take some measures to accelerate the FDI ofMSB. With consideration of the present condition of FDI of MSB and the present outwardenvironment of MSB, I think the FDI of MSB is practicable and necessary. At the sametime, I also notice that there are still many problems exist in the FDI process, includingsome with the business themselves and some with the outside environment. Taking thesefactors into consideration, I tried to make some advice about how to invest successfully,which is comprised of some to the company and some to the government. The article isdivided into three parts: The first part I try to expatiate the theories of the FDI of MSB. I also analyze thesetheories' applicability for Chinese reality and their indication for the FDI process ofChinese MSB. I managed to find the problems which hind the further quick development of FDI ofMSB in the third part from the MSB themselves and their circumstance. In the last part I make some advice about how to overcome those problems to thecompanies, and meanwhile I make some advice to the government about how to create aperfect developing environment for the MSB.