China's Wto Entry Of Foreign Direct Investment Effect Analysis

Since China's joining into WTO, foreign companies have built up stronger confidence in their investment in China. With the gradual fulfillment of various WTO commitment and wider opening in various business areas, foreign companies can access much broader investment span. In addition, its continuous benign growth momentum makes China become the strategic focal point for MNCs (Multi National Company); Furthermore, the new round of worldwide Merge & Acquisition of MNCs also make MNCs re-orient China's position. Under present globalization atmosphere, China has played a vital role in MNCs'global business chain with MNCs acting as carrier for direct investment. Therefore, the author has put FDI's effect analysis since China's joining into WTO 5 years ago as this paper's research focus, believe the research will have some reference or practical value for certain business departments.This paper firstly reviews China's economic development through the recent 5 years after China's access into WTO, analyzes FDI's feature through various economic data and charts, to show FDI's contribution to China's economic growth. While FDI not only offers us development opportunities, but also brings us challenges, the fundamental challenge is the challenge towards Chinese enterprises. This paper also illustrates various counter-measures for our enterprises. Chinese enterprises, especially those ones under strong protection, should know how to dance with"wolves"since they have been here now.Under the present globalization environment, it is a normal state that"I am within you and you are within me". Though certain problems will be arisen through FDI utilization, it is doubtless that FDI strongly supports our domestic construction, stimulates our high and new technology's development, fosters our participation into the globalization, FDI creates large numbers of job opportunities,increases our income, positively catalyzes various factor markets'set-up, such as capital, labour, technology and information. China could and should seek for further and deeper opening, the most key area to improve is to improve FDI's quality. China's opening and FDI encouragement policy is non-reversible.