Internal Restrictions And Strategies Of China's FDI

As an irresistible trend, economic globalization is becoming more and more important in 21st century. After China entering WTO, the tidal wave of globalization will give an impact to all kinds of fields of internal economy. Up to the end of 2004, there are 508941 accumulative total foreign-invested enterprises authorized to be established in our country and there are 450 enterprises among the world top 500 invested to our country, which internalized the international competition and internationalized the internal competition. If Chinese enterprises want to survive and occupy a place in the severe competition of the world market, this is the only way for them to develop foreign direct investment (FDI), integrate resources all over the world, create own comparative advantage, improve our core competing power. Now the problems needed to be settled urgently are: If Chinese enterprises want to go outside smoothly and develop world-class transnational corporations, how to determine the investment mode and position choice? The main purpose of this paper is to approach some methods and solutions to those problems and to provide relevant suggestions to Chinese two main industries about their investment mode and position choice. The meaning of this paper is to determine the role of government during enterprises' FDI and to give Chinese enterprises some directions and references for their foreign investment.Firstly, this paper elaborates the present condition and characteristics of Chinese enterprises' FDI, and analyzed the FDI's efficient cause and development trend. Then, it expatiates the internal restrictions and relevant strategies during the process of FDI in details from macroscopic and microscopic perspectives. Finally, from Chinese two main industries, this paper combined the proper investment mode and position choice together according to its own industry characteristics. I really hope it can provide some important references for our Chinese enterprises when they want to develop outside and want to be competitive large transnational corporations.