Study On Chinese Foreign Trade Effects Of China Direct Investment Abroad

This paper studys the Chinese foreign trade effects of foreign direct investment from China(China FDI),then puts forward some correlative measures in order to develop the foreign direct investment positively and expand the foreign trade of China.The paper studys the Chinese foreign trade effects of China FDI in macroeconomic aspect and microeconomic aspect by adopting the method of criterion study and demonstration study. On the base of the interrelation of foreign direct investment and foreign trade,The paper analyses the Chinese foreign trade effects of China FDI from exporting scale,exporting structure,trade condition and foreign trade competition. The main conclusion of the paper is that China FDI expands the scale of foreign trade of China as a whole,though different type of FDI differently affects the scale of foreign trade to some extent. The results of the paper indicate that China FDI obviously promotes the development of foreign trade of China in the deploitation of international market,exporting of goods and labors,exploring strategy resource abroad,advancing international competition of Chinese products and the improvement of foreign trade structure. As China depends on international direct investment heavily year by year,FDI from other countries is not able to advance the Chinese foreign trade competition basically because it deteriorates the foreign trade condition of China under the condition of transfer price in multinationals. Therefore,Chinese government and enterprise should choose correct strategy of FDI and corresponding countermeasures to develop FDI on a large scale. Thus,we can make full use of comparative advantage and strategy resource abroad to improve foreign trade condition,advance foreign trade competition,and finally promote the continuing development of Chinese foreign trade.