Negative Effect Of FDI To China And The Countermeasures

After the Reforming and Opening, China, our country is absorbing more and more Foreign Direct Investments (FDI), which becomes the essential factor to promote the development of our economy. The introduction of FDI, not only gives a large amount of fine fund to our country, but also high technology, experiences of management and talents. Its overflow effects play pulling function for the native enterprises and industry upgrading. It should be said that, FDI plays an important role to the development of our country.However, FDI, while playing a certain role to the economic development of host country, if not be restricted and guided rationally, it may bringing some negative effects, for example, transformation of polluting industries, the loss of state-run assets, market and products monopolize etc.. We should take some measures, while not denying its favorable side, to avoid its negative side.This dissertation combines the theory to analyze some negative effects met during the process of utilizing FDI in our country, the examples combine the data of the domestic and Qingdao city, pointed out the reason which caused the negative influence, emphasize that we should not only pay attention on the quantity of FDI but also the quality of it, analyzed the negative effect brought to the economic development using the visual angle of sustainable development. After that, it mentioned that we should try to rearrange the policy and tactics for FDI due to the new situation especially after the entry of WTO, and also gave some suggestion.The article is divided into four parts, the first part illustrated why this topic is concerned and the meaning to study it, also introduced the recent studying situation home and abroad, then the analyses methods; the second part analyzed the situation of FDI in China, and affirmed the contribution that FDI brings to the economic development of our country; the third part analyzed the negative effects brought to our country with FDI, studied its negative effects from different angles; the fourth part combined the negative effects mentioned above with the current situation of China, suggested "corresponding countermeasures.