A Study On The Effect Of Fdi On The Manufacture Industrial Development Of China

The reform and open policy has been taken action in China since 1979. During those 30 years, the national economy of China has been improved largely, especially in manufacturing industry, which is one of the most important material basics of social development. This policy not only leads China step into the world economy, but also lets"Made in China"get a high fame around the world. In this progression, FDI has played a great role in increasing the stock of capital, improving the technology and the ability of international competition. As the statistical data shows, since 1990, the rate of FDI in manufacturing industry has been above 50% against the total sum in China, besides the rate of exchange value of export(in foreign investment enterprises above designated size of manufacturing industry)has been above 60%. This paper will demonstrate the development of manufacturing industry and the FDI in China firstly, and then take account in a large number of data on different departments, make deeply analysis about the effect of FDI on the stock of capital, the improvement of technology, adjustment of industry structure and export structure, the quality improvement of labor force and the ability of sustainable development in manufacturing industry of China. The research method is mainly referenced by the <a research report on the development of China's manufacturing industry 2008>, the special point is that we added FDI as an effect factor in the research to test the development of manufacturing industry of China. After qualitative analysis and quantitative analysis, we obtained the main conclusions: FDI in manufacturing industry results positive effect on most facts. But the effect on push the improvement of technology, quality of labor force and enhance the competition ability of products international market is weaker than domestic enterprises. Finally, we give some kinds of suggestions based on the analysis above for the healthy and sustainable development of China's manufacturing industry.