On The Status, Performance And Strategic Choice: An Analysis Of Chinese FDI

The inflow and outflow of FDI in the countries all over the world becomes a significant feature of global economic division. After the financial crisis, the economy of developed countries recovers with slow speed. The status and power of developing countries improves gradually in global economy. Furthermore, many countries are in a position of financial stain. And financial institutions and enterprises are also in a position of difficulty. Therefore, their desire of external sources of finance provides favorable external opportunities for domestic overseas investment. The development of domestic economy faces complex situations both abroad and at home which include the demand of strategic energy and resource in sustainable development, anti-dumping, new trade barriers, and so on. It is unwise to depend on export products simply to obtain favorable balance of trade. China is in a process of industrial restructuring, and it is necessary to utilize FDI to induce foreign advanced technologies and scarce resources to promote the development of domestic economy. Through a long development, Chinese business has accumulate experience of international operation, forms their superiority in the aspects of accumulation of capital, technology, human resource, business management, products popularity, etc, and possesses the condition of FDI. Under such circumstance, it is clearly proposes by national planning that we should encourage FDI of business and speed the strategy of "going global"Through theoretical and empirical analysis, and the comparison of FDI both abroad and at home, this thesis intends to do research on the status, performance and future strategy of Chinese FDI from the following three aspects:the theory and practice of FDI, the history and development of FDI, and the macro and micro angle of FDI. Chapter one is the introduction part which mainly introduce the research background, research question, research content and framework. Chapter two gives the literature review of FDI theory of Marxism and western economists, and then gives a summary of previous research in recent years, which provides a preparation of the whole research. Chapter three is the review of the development history of Chinese FDI. And it puts forward that after financial crisis, Chinese FDI enter into a new stage. It stresses on the situation and challenge faced by Chinese FDI. Chapter four introduces the development status of Chinese FDI and summarizes the development history and situation in some typical international countries. Through this comparison, it finds out the new challenges faced by China in this new stage. Chapter five, first of all, analyzes the relation of FDI with economic growth, international balance of payment, and industry selection theoretically, and then analyzes the performance of Chinese FDI through the macro economy data between 1980 and 2009. The results demonstrate the performance of Chinese FDI is not good. In the end of, this chapter gives an analysis of the reason of this situation. Chapter six, on the basis of previous analysis, studies on the overall strategy choice of Chinese FDI, and the choice of industry, zone bit, investment model, and risk prevention, ect,. Chapter seven is the policy suggestion of this thesis. It provides various kind of suggestion on Chinese government and business from macro and micro aspects.By using the updated statistical data and combine current economic situation both international and domestic, this thesis suggests that china faces slow economic recovery, decreasing flow, and restriction on business fund and technological management ability. Though Chinese FDI has a good development, it also is in a position of small scale of investment, unreasonable structure of investment, sole investor, and so on. This thesis takes examples by international FDI experiences, utilizes relative FDI theory, and combines domestic situation to propose that china, as a leading in developing country, possesses such superiorities as polybasic regional structure, economic structure, and technology structure, abundant human resources. The strategy choice of Chinese FDI should turn in the direction of developing and developed countries, and increase the investment in developed with the upgrading of industrial structure. On the choice of investment industry, China should focus on the transfer of traditional industry, participate in foreign high and new technology investment, take full advantage of domestic marketing environment, labor force cost, talents, and characteristic products to increase FDI but always pay attention to risk prevention and protect Chinese economic security. In the end, on the basis of previous analysis, this thesis puts forward some policy suggestion. It suggests that government should set up specialized executive institutions, adjust tax structure, increase financial subsidies, increase financial support, control and utilize foreign exchange reasonably to support the FDI of medium-sized and small enterprises. The business participating in FDI should improve international management ability from the aspects of person, technology and management, ect, cooperate with multinational corporation, choose correct investment industry, position and investment pattern.