Foreign Direct Investment In International Comparison Study And The Countermeasures Of China

Since the second half of the 20th century, the rapid development of foreign direct investment (FDI) activities, which aim at realizing the best resources allocation globally, has caused elements of production such as capital to transfer transnationally. Following international trade, international finance and securities investment, FDI has become the major international economic activity, where transnational corporation plays the lead in the international economic arena.After the 1980s in the 20th century, China has become one of the counties that have attracted the most part, of inflows of FDI. Meanwhile, Chinese enterprises have achieved substantial development in direct investment in foreign countries. In general, China's FDI is still in a beginning stage. But it has developed rapidly in recent decade. Especially after China's entry into WTO, it can be foreseen that with the further development of Chinese economy and the deepening of it's reforming, China's FDI will achieve much more. Therefore, the further research on Chinese enterprises' FDI plays an important role in a series of issues, as to if China can seize the opportunity of China's entry into WTO, meet the challenge of the integration of world economy and share the benefit of international capital movement.The study has used the method of comparative analysis with theories and substantial evidence to discuss the topic mainly from 3 aspects: (1) it systematically sums up, evaluates and compares the various typical western FDI theories and those FDI theories suited with developing countries, and use them for reference; (2) it analyzes the successful experiences of other developing countries' FDI and puts forward the advantages and features of Chinese FDI; (3) Using the successful experiences of developed countries/regions and developing counties/regions for reference, based on China's situation, it probes into the directively significant strategic issues of "how to act". It puts forward solutions and countermeasures on different aspects in China's FDI, such as the selection of industries and regions of FDI, capital management and the form of operation of Chinese transnational enterprises.