Changes In The Way Of Foreign Investment And China's Significance

This year,2008 is the 30th year of our country's reform and opening up.This period is also the 30 years for the world to accelerate its economic globalization. In this 30 years,with the expansion of multinational corporrations which is the main body of international trade and investment, the cross-border M&A can be seen in everywhere,and then it approached a climax in the middle of 90's last century. This tide is a lighting character of today's economy,and it will definitely influence the world economy in future.The new tide of M&A make us to know that in the two main manners of the international direct investment,cross-border M&A has been replaced the cross-border creation,and it is also the main manner for the multinational corporations to invest in other countries. That is to say, cross-border M&A has been the main mode by the corporations to take part in the integration of world economy. Transnational M&A by the transnational companys,with huge capital flows and bussiness integration, has been influencing all the countries and regions in the world,so every countries must face with it.As a country like our China which is performing the opening up firm and steadfast,is always using the purpose that attracting more foreign investments as our basic principle. After took part in WTO,we got more close with the world economy,so the relationship between China and cross-border M&A is going to a new level. Recently, the growing speed of China's FDI is decreasing, the primary cause is that our manner of attracting FDI and the main manner of FDI are different. China is always using cross-border creation as the main manner of attracting FDI, but this can not adapt to the general trend of cross-border investment. So ,researching the cross-border M&A can give some usefull advice to our attracting FDI in the new period.To know and research the situation and motivation of the global cross-border M&A, and to find out the condition of the China's attracting FDI, then to make sure the future of our using FDI,and to give some rational advice, all these are the purposes of this paper. In this article, first, I introduce the main theroies of FDI,these theroies analyse and explain the motivation of FDI from different points of view. But they do not explain that why the multinatinal corporations choose the cross-border M&A as the main manner to invest in other countries and why don't they choose the cross-border creation. The impact of the M&A can contain good and bad, so we must realise it, and then to use the nice things. After this, by looking back the process of our using FDI, I do some quantitative analysis and regression analysis, by this I get the conclusion that cross-border M&A will become the main manner for us to attracting FDI. By analysing the impact of this change,I give some advice to our country and our firms.