The Analysis Of The Effect Of FDI To The Competitiveness Of High-tech Industry In China

With the rapid step of economic globalization, develop countries expedite the step of upgrade and transfer of industry, especially foreign directly investment of high-tech industry. Transnational Corporations transfer their process, assembly, R&D departments to China in succession, which provides a favorable opportunity for our country that wants to develop her high-tech industry. But at the same time, we should see that there still exists some problems we desiderate resolve. Therefore, we should choose the advantaged side and avoid the adverse side, utilize the FDI in the rational way, and make FDI exert positive effect on the development of high-tech industry in China.One the basis of reviewing some of the relevant literature, this paper illustrates the inner mechanism of advancement that FDI made on high-tech industry in China, which provides the basis of analysis of influence. In this paper, we think the multinational corporations with advanced technologies and capital strength certainly will become the main planners and promoters of the global high-tech industries'development. The high-tech industries in developing countries will grow in strength only if they join in the global production and operation systems. Through utilizing foreign direct investment(FDI), the host country could make up for the technical gap, talent gap and R&D ability in the development of high-tech industries, and could let the high-tech industries in host country integrate into the international industrial chain quickly, so as to help them to create the necessary conditions for catching up with developed countries. Therefore, it will be of great practical significance to explore how to utilize FDI to promote the development of the high-tech industries in our country. At the same time, negative problems are disclosed. For example, foreign enterprises didn't take their core high-tech to China, they just make use of cheapness of Chinese labour force. China has become the process tache in the globle market.This paper demonstrates the effect that FDI put on the high-tech industry in China in two parts. One the one hand, we use TC index as independent variables, FDI as dependent variables to carry on single variable linear analysis. One the other part, we use Douglas production function to make regression, which weigh the degree foreign enterprises exert on state enterprises.At last, the paper puts forward the policy propositions on utilizing FDI to promote the competitiveness of high-tech industry in our country against our current main problems through governmental and corporation point of view.