Local Industyr Chain System Constructiong Under Group Investment

In the age of globalization and information, the opportunities and the risks coexist. The enterprise competition has evolved into a kind of competition which is network, multidimensional, integrated supply chain, form competition group. While foreign direct investment in China also has changed from the initial single or several similar investments (which is a part of supply chain) to downstream or peripheral supporting system extending more and more, which is the overall investment in the industrial chain. That is to say, according to the characteristics of the supply chain, many foreign enterprises get together, thus forming foreign clustering investment (FCI).At the same time, foreign clustering investment also may regard as one kind of investment pattern which is concrete and chained in the foreign direct investment (FDI).Foreign clustering investment certainly will have influence on the development of local industry group. From the perspective of local industry’s own absorption capacity, The article will mainly discusses on the overflow effect the foreign clustering investment to the local industry. First of all, collation and review of predecessors’ research achievements in order to analysis foreign clustering investment (FCI) and its spillover impact factors. Then, explain the absorption capacity as the research angle. Generally speaking, absorbency of the local industry is strong or not will cause the foreign clustering investment role to be able to play the promotion or restriction. Strong absorption ability of the industry can be better digestion and utilization of the spillover effect the foreign investment brings. At last, The article will take Zhejiang province region industry as the research object (considering the data available), through the absorptive capacity of Zhejiang province industry, analysis the relevant data to get conclusions that when technical factors in absorptive capacity are stronger, the foreign clustering investment can promote local industry group efficiency; when institutional factors are stronger, foreign clustering investment may have negative influence to local industry group, then evaluate the conclusions and give suggestions.