FDI In China, Experience And Lessons For Developing Countires Jilin Province As A Case Study

Foreign direct investment (FDI) has been the most outstanding aspect ofincreased globalization in recent decades, and China as a developing country has beenthe world‘s largest recipient of FDI in the last decade. Jilin province, whichconsidered as second class developed region in China (comparing with the costalregions), is a good Chinese example and useful model to get some lessons through itsexperience. Because, to some extent there is a similar and shared characteristics withdeveloping countries, particularly my country (Sudan): both of them witnessed greatefforts to develop its economy.In order to study the improvement and to observe thefactors which affect and boost FDI in Jilin province, this study not only analyzesrelated theory and different modes of FDI, but also researches the advancedexperience of other countries. FDI could promote the process of economicdevelopment of Jilin province rapidly.This article includes five parts. Firstly, it introduces the background andsignificant of this study, also a general review about China’s policy for opening up itseconomy to promote exports, which finally leads to success in attracting FDI andchina became one of the top exporting countries, and that due to carefulimplementation of reforms, these reforms have provided and increased the incentivesto invest in China.The second part is about the relative theories with FDI, this part provides thedefinition, Classification and Function of FDI, by explaining theories like Themonopolistic advantage theory, Product life-cycle theory, Internalization theory.Thirdly, to explain stages of development, characteristics and influence ofChinese FDI. After China’s accession to the World Trade Organization (WTO) in2001, FDI inflows have continued to rise steadily. By2009, China had accumulatedan IFDI stock of US$578.8billion3China’s Inward FDI almost mainly sourced inthe Asian economies. While39%of China’s Inward FDI stock in the year2008wasfrom Hong Kong. The eastern coastal regions in China attracting most of the InwardFDI flows, for example Shanghai and Guangdong. The Chinese market is expandingrapidly because of the high rate of GDP growth and efforts to rebalance the economytoward private consumption. It was found that market size and market growth are themain factors in China’s position as the most favored location for Inward FDI The fourth part uses Jilin Province as a Case Study to explain FDI and Chineseexperience, it analysis the mode of FDI in other relevant countries experience (OpenMode and Protected Mode), which can inspire and used in Jilin Province, to enable itto improve the current situation, and also discuss the influence of FDI in Jilinprovince economic growth, to find out the relationship between them with the help ofregression method. More than that, it finds the main factors influencing FDI in Jilinprovince. Incentive factors like human resources factors, energy factors, theInfrastructure, market size, economies of scale, economic extraversion, policy Factorsin stock rights and tax, regional policy, industrial Policy, and all facilitating elements.On the other hand reviews the constraints factors, which mainly relevant withprofessional and technical personnel resources, and Industry ClusterFinally, provide conclusions and suggestions, which are given to promoteindustrial development in Jilin province, focusing in stimulating innovation byutilizing foreign capital ideas, to strengthen the industry-oriented foreign directinvestment, to adjust the way of technology transfer through foreign enterprises tostrengthen the introduction of foreign technology and combining independent R&D,to increase foreign investment sources and utilizing foreign capital ways, to re-examine and rationalize the development "incentives", to improve the foreigninvestment environment in Jilin Province, and also to pay attention to the quality andefficiency of human capital.