Analysis Of The Impact Of FDI On Development Of New Industries In China

Since the mid-eighties, "economic globalization " has been an Irresistible trend in the world's economy. In the process, countries have been more Interdependent, and the economic, technical, marketing and communications have become more global characteristics of the form. FDI is the typical representatives of the symbiotic economicAlong with the economic reforms and the opening up of the Chinese market, China has been more attractive to foreign investors, with the amount of foreign investment in China in 2002 ranked first in the world. Foreign direct investment makes up for the lack of domestic capital, increases domestic and foreign supporting corporations, supports domestic enterprises to increase production capacity, it promotes the expansion of domestic enterprises and Technological progress through the demonstration effect, competitive effect, training effect and Industrial Relations, etc. However, along with the industrialization and urbanization today, the degradation of resources and environment has been contradicted with the economic development, and we must find new sources of economic growth to change the traditional industrial development model, which comes up New industries, an innovation-driven technology with radiation capacity and strong enough to lead the industry. What is the effect of FDI in the emerging industries'scale and technologies? What is the differences between the FDI's effects in the emerging industries and the traditional industries? How to adjust our foreign policy to make better use of FDI? This is the concern of this article.Firstly, this paper analysis the impact of FDI on the new industries,Describes FDI's demonstration effect, competition effect, training effect and Industrial Relations in the emerging industry, and compares them with that in the traditional industries. Then, in Chapter four, we use the market turnover of the high-tech industries as the representative of the new industry's output in China between 2005-2009 in 29 provinces, along with their foreign direct investment, the number of students in the school, fixed assets Investment, industrial output as a combination of empirical data to test the Correlation between foreign direct investment and the new industries.Finally, this paper summarizes some existing problems in the use of FDI in China's new industry and puts forward some recommendations for Chinas foreign investment policy in the next stage .