The Study Of Problems On China’s Two-way Investment

The21st century is the age of economical globalization and the economical integration and internationalization, which has become the mainstream of the international economic. Using of the foreign capital and direct foreign investment is the primary way for a country to participate in the global economy and to share the benefits of the economic globalization. Our country has given relatively more importance to the introduction of foreign capital, the scale of the use of foreign capital has been larger and larger from the1990s, and since1992, our country’s using foreign capital has been in the tenth place among the world, and the2009and2010in the second place (only after the United States) and has been the head of developing countries, which played a significant role in promoting the growth of economic for the country. However, the using of foreign investment is the performance about the foreign capital’s flowing to the domestic market and the foreign investment is the other aspect corresponding with the use of the foreign capital which is also important to the economic. In China, the foreign investment started late, developed slowly, falling far behind to the utilization of foreign capital. Until2005, the foreign investment has begun to increase steadily and quickly and in2008exponentially. The figure in2010reached a maximum value of$68billion. The highest proportion of absorption of foreign direct investment and the foreign direct investment of China in2010was1:0.48which is far behind with the balanced average level of the world that is1:1.1and the developed countries,1.14! In addition to the imbalance of the scale of the two aspects, the two-way investment structure also has serious imbalance, whether about the region or industry. What’s more, it can be known form this paper’s new insights that our two-way investment has entered the third stage, which also means that although our country’s scale of using of foreign capital is still larger than that of foreign direct investment at present, the rapid growth of the foreign direct investment is significantly faster than the speed of utilization of foreign capital, the economy is in the intermediate imbalanced stage which means the combination of the two-way investment. At the age of economic globalization, how to recognize and adjust the relationship between the IFDI and OFDI to make it better to serve our economy is an important topic at the present which is can not be ignored. Too much of literature is studying the use of foreign capital and foreign investment in their respective angle, ignoring the relationship between the two and its impact on the Chinese economy. The innovation of this article is just to focus on the combination of the two to compare and explore their inherent dialectical relationship, through which we can study the issue of the two-way investment more comprehensively and more deeply.