A Study On The Impact Of FDI To China’s Industrial Security

With the deepening of China’s reform, substantial foreign direct investment (FDI) comes into China. According to statistics, China’s actually utilized value is to11601.1billion U.S. dollar in2011, an increase of9.72%over the previous year. FDI is a "double-edged sword", it can promote the economic development of the host country from capital, trade, management, technology and revenue sides, but also our country’s industry lifeblood and macro economic are facing the strong impact of foreign capital. Without a doubt, the industry safety is greatly threatened. Current, academic group study more on the foreign capital’s positive effects, and less on negative impacts. But FDFs negative impacts are shocking our national industry safety. So it is very necessary to study on the industrial safety.In this article, the writer anew classifies the influence mechanism of foreign direct investment to the industrial safety in China, divides it into three parts:FDI’s control of industry ownership, control of market and the effect on macro environment. The first part is divided into tangible assets control and intangible assets control. The second part is divided into market share analysis on foreign capital and channel control. The third part is the introduction and analysis of three main impacts.In the industrial safety degree measure part, this paper chooses three important industry safety evaluation indexes and takes the second industry as example, analysis the impact of FDI to some of our country’s important industries by the qualitative and quantitative methods. Through qualitative method, we come to the security industry order under each index and give the evaluation of very good, good, general, poor and very poor. Through quantitative method, we measure the industry safety by principal component analysis model and SPSS software. We come to the conclusion that medicine manufacturing, general equipment manufacturing and special equipment manufacturing industry are in a safe state, food manufacturing, textile industry and fabricated metal products industry are in basic safety condition, while electrical machinery and equipment manufacturing industry is not in safe state, communications equipment computer and other electronic equipment manufacturing industry is in very dangerous state.Finally, this paper puts forward the macroscopic and microcosmic countermeasures and suggestions on how to maintain our industry safety through the reference to other countries’ experience.