Analysis On Strategy Of China’Foreign Direct Investment

With the development of the internationalization of capital, foreign direct investment continues to usher in a new wave of development. Foreign investment around the world is being as an important strategic measure for the development of national economy. The remarkable achievements made by China since the reform and opening up with strong pace of economic development, Chinese companies go out of the country in various forms for foreign direct investment。 They have achieved marked success, actively promote the sustained and rapid development of economic.At present, main body of the foreign investment is still the world’s economic power. China develops significantly slowly. Compared with the development situation, the economic and technological strength is far beyond the competitiveness of foreign investment. At the same time, a turning point appears in the domestic market for economic development pattern. It must be carried out to adjust the major strategic industrial structure in short term. As a major coping strategy, foreign direct investment will play an important role in the future. During the international trade, forced to accept the anti-dumping by serious local protectionism are common to see. If increasing direct foreign investments in these countries, it will circumvent the trade barriers and resolve these thorny practical problems. Therefore, the development of foreign direct investment must be raised onto a higher strategic position to be discussed and researched to promote the rapid growth of the domestic enterprise management.Using the foreign direct investment theory, and based on the analysis of China’s foreign direct investment, according to China’s foreign direct investment scale, location, industry distribution and investment in the main mode of entry. The rapid development of China’s foreign direct investment at this stage, compared with developed countries, the overall scale is still a wide gap. Investment location is mainly concentrated in Asia and Latin America. The industry distribution have become more diversified, the main part of investment is the state-owned enterprises, the main mode of entry for FDI is the mergers and acquisitions.This paper points out the opportunities and challenges encountered on foreign direct investment. Finally, towards the investment location, industry, investment entities, the way into point countries and the Government’s policy to promote the development of foreign direct investment, it is given the recommendations of the strategic adjustment. Large multinational companies can use the foreign direct investment strategy of gaining an advantage, Small and medium-sized private enterprises can use the foreign direct investment strategy of exploiting an advantage.