Exploration & Study On The Influences Of International Financial Crisis On Foreign Direct Investment (FDI) In China

Foreign direct investment (FDI) has become a major power in promoting global economic growth. In recent years, FDI has played an important role in promoting the rapid development of China's economy.But, FDI, as a form of capital, is influenced by many factors in production of international investment, which can not be ignored. Financial crisis have made a serious adverse impact on China's FDI especially in the full-blown financial crisis in the world. The adverse effects, as well as the strategies for dealing with them, have become a new task to face in theory and practice.The ways of FDI in China and the transmission mechanisms were studied firstly, which were impacted by the financial crisis though international trade channels, channels for international capital flows, economic globalization and the self-fulfilling. There are trade partner-type conduction, trade competition and industrial linkage-type conduction effect in international trade channels, but in the international capital flows channels, the FDI was effected by the financial crisis through the transmission of the international financial markets, and also the systems of bank be effected with the result that the market downturn to invest, and ultimately the foreign investors could not successfully attracted. With the economic globalization, the monsoon effect exacerbated the conduction of the financial crisis.As a big country, the United States is a place, where the capital of the world accumulates. All the countries have also been a corresponding impact on the financial crisis when the financial crisis broke in the United States.The economic growth of the Western developed countries slowed because of the transmission, which have a similar in economic, political and cultural similarity. And the developed would return gradually existing foreign investment, which eventually led to the investment in China reducing.Then, the effects of the financial crisis on the total of FDI were described in this paper. In 2008,the amount of FDI maintaining a growth, but the rate of growth obviously slowed down. The financial crises led to an overall decline in the number of contracted foreign investment, as well as the new foreign-invested manufacturing enterprises, at the same time, the speed was slowing down in real estate, and a number of social problems were led to because of the non-normal evacuation by the foreign investors during the financial crisis.The change of FDI was caused by the financial crisis, but also the impact of technological progress in China, international trade, employment and economic growth. On the technical side, the reduction in capital of FDI caused by the financial crisis led to the reduction of the conditions and learning opportunities for China's high-tech enterprises, and reduces the FDI enterprises in China and the multinational corporations in particular, competition and cooperation, and make our country in these areas not only lack of capital investment and financing but also lack of production technology.However, the opportunities of technological innovations were brought out, and the financial crisis made the enterprises take advantage of the current opposite mechanisms of the external market environment to embark on the road to technological upgrading. The original structures were changed by the financial crisis while it reduced the import and export trade in China, and it increased the trade links between the potential emerging markets and developing countries.The financial crisis, originating in the United States, continued to spread in the world, and inhibited the growth of our economy though export, investment and consumption of these channels in a certain extent, and brought enormous pressure in growth of economy.For the above analysis, the coping strategies is tried to make, which is for dealing with the diverse impacts caused by the international financial crisis. First of all, the policy should be adjusted as soon as possible and a good environment for foreign investment should be created. Secondly, to strengthen the governance for the non-normal withdrawal of foreign investment and optimize the capital structure of governance to foster international brands;and at the same time, to improve the quality of bank assets and strengthen financial supervision...