The Research On Effects Of Foreign Direct Investment On China's Foreign Trade Imbalance

China's foreign trade has experienced a splendid development and a broadened scale since Reform and Opening-up Policy was carried out in 1978. However, we also have faced a serious problem of active trade balance which has lasted for 14 years began from year 1994 and is presenting an enlarging trend recently. But our surplus of trade is at the cost of sacrifice of economy sustainable development, and it would also incur main trade-partners' revenge in global market, aggravate trade friction and result in excessive foreign exchange reserve which were sure to increase the pressure on appreciation of the RMB and inflation. Accordingly it would bring adverse effect to continuous and healthy development of foreign trade and economy.FDI has played a very important role in foreign trade. Therefore, established in China's foreign trade imbalance, analyzing questions about what, to what degree and how does FDI affect foreign trade imbalance makes realistic and profound impacts on correctly realizing our foreign trade imbalance, rationally and effectively utilizing of FDI and accelerating economy's better and faster development.Based on theories studies about relation of FDI and foreign trade, this thesis divides the effects of FDI on foreign trade into trade-complementary effect, trade-substituting effect and trade-shifting effect, then use the three effects to study the influence of FDI on China's trade imbalance, and the argument magnifying effect of FDI on trade imbalance does exist is proved. This thesis takes a further study through the development course and main characters of trade imbalance and FDI, and through FDI enterprises' exports structure as well. In order to measure the quality and causality of these effects, this thesis takes an empirical research from both direct and indirect aspects of FDI's effects on trade imbalance separately. The result validates not only the existing of both effects but also the causality between FDI and trade imbalance. In the end, according to forepart's research, aiming at the sustainable development of foreign trade and whole economy, some countermeasures are given.