An Analysis Of FDI Policy Of China

The trend of economy globalization makes more and more countries integrated with world economy since this century, and at the same time it has influenced economy development of every country. It is true that international trade and foreign direct investment becomes important engine for developing of global economy. With focusing on international trade, more and more countries pay much attention to foreign direct investment because it is more useful for expanding production and markets, meanwhile it can optimize resources utilization and upgrade industrial structure. Recent years as development of science and technology, especially for communication technology, international division and international cooperation of economy and technology are intensified. International trade can't gradually meet requirement for communication of international economy and technology. Foreign direct investment as important method for international economic activities has become important engine for quick global economy development. China, as important member of world, its great economy achievement and substance of opening up to outward all determine that foreign direct investment should be an important method for taking part in international economic communication and contribute in global economy development this Phenomenon can't be completely explained by monopoly advantage theory. The purpose of this thesis to expand new perspectives of foreign direct investment of developing country and certificate that it is reasonable for China's outward FDI, especially toward the developed countries. And at the same time, this thesis comes up with policy for China's outward FDI.Base on studying developing and developed countries' FDI theory. This thesis expands developing countries' FDI theory and gives "Diversification viewpoint" for developing countries' FDI. This viewpoint argues that monopoly advantage isn't single determined factor for enterprises' overseas direct investment. On the contrary, it is determined by the comprehensive factors. Meeting one of factors, that is say if this factor matches the purpose for enterprise overseas investment, for example achieving advanced technology and overseas strategic resources and so on. This viewpoint emphasize on different strategic investment motives and purpose, this differences determine investment behavior. This point is different from the traditional FDI theory, which makes developing countries carry out overseas investment without monopoly advantage and give reasonable theory basis for developing countries' overseas investment. In the strategic outline for China' overseas investment, this thesis presented basic principals and three orientations based on "Diversification viewpoint ". As for entering style, this thesis compares merger and acquisition. And give entering method for overseas investment. At the time this thesis involves construction of SOEs related overseas investment. This also discusses the selection of location and industry of overseas investment and service system and promotion policy of government.