The Impact On Chinese Economy From The Foreign Direct Investment Of CAFTA---the Research Based On The Perspective From China

Since the1990s, the globalization and regional cooperation about economy has developed rapidly. To make full use of the opportunity of global industrial restructuring which in caused by the deepening international division of labor and the developing countries can catch up with globalization and regional economic integration wave of development,East Asian countries must make more efforts on the regional economic and trade arrangements. CAFTA is the most striking sub-regional trade arrangement in Asia because of the regional advantages of China and the ten ASEAN countries with geographical proximity. Otherwise, China is the largest country in Asia, whose development on economy has attract the attention from all over the world. The establishment of CAFTA will bring not only the liberalization of trade and the free flow of the various elements in the region, but also will have an impact on the international direct investment. In2009, China and the ASEAN signed the "China-ASEAN Free Trade Area Investment Agreement", indicating the importance of investment in CAFTA.At present, most of the researches on the FDI of CAFTA focused on the effect, which view in from the entire region, but there are few researches basing on the view from China only. China, as an important member of the CAFTA, plays a role that can not be ignored, so we can have a try on the view from China.On the basis of the analysis to elaborate regional economic integration theory of direct investment flow, origin, and the status of industrial distribution of FDI inflows to the status of the CAFTA region as a whole, combined with international direct investment theory and the use of panel data measure the investment effects of CAFTA empirical research, and in the process of empirical analyzes the situation in China, but also binding of FDI on Chinese economic growth, foreign trade and industrial structure the impact, to arrive at the CAFTA not only to promote the role of China and ASEAN countries has more advantages than China’s FDI inflows also has a role in promoting FDI inflows for the region as a whole, and FDI inflows stimulating the growth of the Chinese economy to a certain extent, also had a certain impact on China’s international trade and industrial structure, China should be combined with their own situation, to develop reasonable and effective strategy to deal with the opportunities and challenges brought about by the CAFTA.