Research On Countermeasure Of Optimizing Foreign Investment Structure In Shenyang Municipal Government

Through the 30-year development of reform and opening up, foreign investment has already become an important part of our national economy. With the speeding up of the international industry transfer and the constant implementation of China's opening up policy, domestic cities are having an increasingly fierce competition for international capital. To increase investment and expand the use of foreign investment for variable cities have become important means and approaches of promoting industrial structure adjustment and upgrade as well as maintaining sustainable economic development. Since the 21st century, especially after China's accession to WTO, with the expansion of the opening up area and the improvement of investment environment, Shenyang City's using scale of foreign capital is expanding every year, and at the same time has a significant expansion in the investment area, which plays a very important role in promoting the rapid development of urban economy. But with the intensification of international competition of attracting investment and the restriction of domestic macro economy and land resources, the structural problems of using foreign capital in Shenyang began to appear.There is the aim of this research, under the circumstance of the current global economic recession that brought by international financial crisis, by making full use of the active effect of foreign investment growth, turning crises into opportunities, and finally achieve the upgrading of industrial structure in Shenyang. This research also puts forward countermeasures and suggestions in optimizing Shenyang government's foreign investment structure.This paper analyzes the present situation of using foreign investment in Shenyang, and points out the problems of foreign investment structure.From the view of industrial structure in the use of foreign capital, the utilization of foreign capital of Shenyang City's primary industry is still at the initial stage that its scale is small and proportion is low; in the secondary industry ,the use of foreign investment is mainly for manufacturing industry, but is in shortage of foreign capital in those area as high-tech industries, also has neither enough driving forces in the industry chains nor many industrial clusters projects; as for the tertiary industry, the utilization of foreign capital is mainly in real estate industry, with relatively fewer producer service projects such as design, research and development, warehousing, logistics which could match the advanced manufacturing industry. And also the scale of modern service industry projects is not big enough.From the view of the scale and structure in the use of foreign capital, compared with the coastal areas ,Shenyang has fewer large-scale foreign investment projects, and those flagship, cluster-type projects that can form a industrial chain, attract supporting industry are still less. In recent years, Shenyang achieved remarkable results in the introduction of large projects in the real estate industry, but the introduction of large projects in the manufacturing industry is not so good. The operation of some projects hasn't become mature because of having not realized the regulation of resources though been registered.From the view of the structure of foreign investment sources, Hong Kong and South Korea are the main source of foreign investment of Shenyang, which have accounted for more than half of the city's total foreign investment for many years. Singapore and Taiwan are also eager to invest in Shenyang. In the global FDI circulation, multinational enterprises of the United States, Japan and the European Union are the main force of international investment. But in the recent years, the investments of the United States and Japan in Shenyang are in slow growth, the amount of fund from the European Union countries is relatively small, so the potential of investing can be further explored.From the view of the regional distribution of foreign investment, the use of foreign capital in Shenyang Development Zone, town and county is in a balanced proportion in recent years. The use of foreign capital in Shenyang is in an echelon development trends that Development Zone develops first, city has a quick overtook, and suburban follows up rapidly. However, regional structures of Shenyang in the use of foreign capital still has some shortcomings: industry projects and high-tech industrial projects in the development zone are small in scale , major affective industrial chains and industry-cluster projects are relatively fewer; commercial real estate projects in the city are too much, modern service industry projects such as finance and insurance, business services and information technology are less; the use of foreign capital concentrated in the suburban real estate development projects, agricultural projects in the town is less than normal.From the view of patterns of the use of foreign capital, foreign merchants'tendency of solely-invested has become increasingly obvious. With foreign merchants'capital increase, equity participation, merger and the domestic enterprises'gradually increased projects in the overseas list, Shenyang shows diverse trends in the use of foreign capital. However, Shenyang is still in an initial stage for its foreign equity participation, merging projects, and overseas listed enterprises are still in a small number and have little capitals. At the same time, foreign merchants'extensive use of solely-invested investment approach is not conducive to the state-owned and private enterprises of Shenyang in importing foreign advanced technology, professional talent and management experienceCompared Shenyang with the situation of Dalian, Hangzhou, Ningbo, the three eastern coastal opening cities'structure in optimizing foreign investment, from the scale of foreign investment we can find out that a northward movement of foreign capital began to appear under the background of the acceleration of the Northeast old industrial base's revitalization and the increasingly tense of southern coastal resources, energy. Shenyang and Dalian have become one of the fastest-growing cities in attracting foreign direct investment in the country.From the view of industrial structure of foreign capital, Shenyang foreign investment attraction mainly concentrated in the real estate industry, the use of foreign capital in modern service industry is relatively less, the use in software and service outsourcing industry is only one-half of that in Dalian and one-third of Hangzhou. The use of foreign capital in manufacturing is just over the amount of Hangzhou among the four cities and the proportion is in the last place.From the view of the structure of foreign investment sources, Hong Kong is a major source, it has the largest amount of investment capitals among the four city .The enterprises of Singapore, Taiwan and other Southeast Asian countries and regions have more investment in Hangzhou and Ningbo; Japanese and South Korean companies are more willing to invest in Shenyang and Dalian, in which Shenyang has more South Korean enterprises, Dalian has more Japanese-funded enterprises. In the past two years, the use of domestic investment in Shenyang is on the top of the four cities whether in aggregate or in the individual project scale. Nevertheless, foreign investment of the United States, Japan and South Korea and other major sources are all in a downward trend, the attraction of investment in Europe also do not have obvious effect, and Shenyang's traditional advantages in attracting South Korean investment have been overtaken by Dalian.From view of the regional structure of foreign investment, Shenyang city and the county both rank first in the scale of foreign capital, but mainly concentrated in the big real estate projects, but have fewer industrial and modern service industry projects. Pilot areas have smaller proportion of foreign investment than urban areas and counties, that in the last place of the four cities. It reflects the industrial agglomeration capacity of Shenyang's pilot areas is relatively weak, and is also in the lack of leading industry projects and industrial cluster projects.There is a conclusion which is drawn from the experience of Dalian, Hangzhou and Ningbo. In optimizing foreign investment structure, Shenyang must formulate a development plan of using foreign capital, give a clear positioning for each industrial area, and put emphasis on livening current assets and saving land use for the elements like land has gradually become the constraint to attract foreign investment. Then the foreign investment should be guided into some key industries like advanced manufacturing, high-tech industry, and also finance and insurance, outsourcing services, information consultation, and other modern services which has the ability of enhancing the city's comprehensive service functions. Shenyang should also focuses on the introduction of the headquarters, research centre and financial institute of multinational enterprises. Trying to open up the public utilities area and encourage the foreign investment in agriculture, and optimize the ways of using foreign capital, so that source of foreign investment would realize diversification. It should also improve promotion system of foreign investment, further optimize the cities'investment environment and try its best to create the policy, management, business and service environment which are conducive to foreign investment.