Foreign Direct Investment On Chinese Industrial

As a great developing country, China has carried on reform and opening policies to the outside world for many years. And it has been attracting more and more foreign direct investment for our construction in the process of its industrialization. In the past twenty years, the magnitude and scale of investing funds from FDI, especially from MNC is extending continuously. MNC investment plays more and more important role in Chinese economic development. At present, MNC direct investment has already become an important and fundamental part of China's economic development.While the MNC direct investment brings positive effects on China's industrial development, it also makes some negative impact. From the point of the whole economic development, we should pay more attention to study the impact generated by the MNC direct investment when China attracts more and more FDI. This dissertation analyzed this issue from four parts.The first part is on the basis of summarizing correlative theories, the dissertation has analyzed the technical spillover effect of MNCs' direct investment in economical improvement and industrial development. The second part of the paper has analyzed the MNC direct investment current situation and development direction in China. The paper describes the positive and negative effects on China's industrial development. The third part of the paper has taken the auto line as example (as it is the stanchion and the representative of modern industry of the national economy, and plays an important role in the country's industrialization.), introduces the current situation of the China's auto line industry and how to meet the challenge from the MNC direct investment. In the fourth part, the paper draws a conclusion about how to secure China's economics safety and how to make best use of MNC direct investment based on the analysis of the theories and auto line industry.