Industry Choice On Foreign Direct Investment Of China

The new wave of multi-national investment is springing up as the nowadays development of economic globalization. The FDI (Foreign Direct Investment) is an important feature of economic globalization and the main force in world economic growth. Facing up to the fierce international competition, only by means of developing FDI, establishing the international production system in terms of multi-national operating, can a country hold a predominant position in future competition. China is in the same condition, aiming to boost the economic, development, optimize industry structure and enhance the competition of Chinese enterprises, it should seize the opportune time in world economy regulation by adapting to the trend of development in world economy, participate in the co-operation and develop the FDI timely and moderately.As a developing country with improving international standing, it has achieved the outstanding accomplishment of continuing and high-speed growth on national economy. However, some new varieties and inconsistencies in economy have appeared in recent years, which indicated the profound changes in economic development pattern and show China is stepping to the key phase of industry structure regulation. Being confronted with the economic globalization and new trend of FDI, a global view is necessary. The regulation of industry structure should be based on international division of labour and scanned from the 21st century's time point. Therefore, China should break through the stereotyped way of thinking—National Industry Regulation, and access to international division of labour and competition more extensively to strengthen the global economy integration.The level of internationalization on economy and opening-up is improving through over 20 year's reforming and opening-up in China. Aiming to drive the export-oriented economy's integrated development and acquire a place in globalization, except for utilizing foreign investment China has to promote FDI more actively. 'Attracting foreign investment' and 'Going global' are two indispensable sides in a country's establishment of open economic system. Based on the fact that FDI is in the elementary stage, China is starving for competitive industries meeting the market demand in order to further the FDI.The paper analyzes both inside and outside environments of FDI under economic globalization background. After the probing in theories of industry choice, it bringsthe analysis on characteristics and status of FDI of China, furthermore it points out the key and direction of industry choice. The last but not the least, the author lodges the counter-measures and suggestions on the way to globalization.