Character Of The Dependence On FDI Of China's Economy And The Research On It's Impact

During the thirty years of China's rapid economic development,Foreign direct investment(FDI) plays an important role.And along with China's economic development, the scale of FDI in China is increasing,In 1985,the data is 1.956 billion dollars,but in 2002,it has increased to 52.743 billion dollars,and in 2009 the data was 90.03 billion dollars.And it's market share in every industry is increasing to,especially in manufacturing and real estate.The degree of China's dependence on FDI is growing.In this paper,we analyze the situation of China's dependence on FDI through the aspect of degree of dependence on FDI, degree of dependence on capital formation,degree of dependence on foreign trade. Our analysis shows that the lever of China's dependence on FDI was growing from 1978,but since about 2000,it has began to declined.After the character of China's dependence on FDI, we also analyze the reason of it's appearance and it's effect on China's economic through analyzing it's total economy and the situation of various region and industry. This paper analyze that it is owning to system constraints technology gap and the uneven industry structure in China.. After that the paper still also analyze the effect of this problem in China,the result shows that it will affect China's technology progress industrial control,profit distribution, monetary policy,import and export,balance of payment an so on.At last this paper propose some suggestions.It views that we should reduce China's dependence on FDI,and control it at an appropriate lever,and then avoid suffering the negative effect from other countries'economic fluctuations,assure the healthy and stable development of China's economy.