Research On The Evolution And Motivationof Foreigndirect Investment Of China’ Sautomobile Industry In The Perspective Of Industrial Security

It is analyzed based on the industry security theory, foreign direct investment theory, and the relevant theories about investment motivation. The China’s auto industrialsecurity score is measured by constructing evaluation index system of the automobile industrial security and establishing the industrial security evaluation model. The foreign direct investment evolution andmotivation regression modelin the perspective of industrial securityof China’s auto industry is established on the above. The industrial security score is taken as the explained variable, and the FDI amount on behalf of the automotive industry evolution variableof foreign direct investment and foreign direct investment income tax rate on behalf of the foreign direct investment incentives variable of China’s automobile industry are the explanation variables in the econometric regression.The foreign direct investment evolution and incentives of China automobile industry in the perspective of industrial security are analyzed combining with the above econometric results.The growth rate of the security score and that of the FDI amount in the evolution are positively correlated. When the FDI amount increasesby one percent, the auto industry score will increase by 0.30 percent. The automotive industry evolution of foreign direct investment is divided into three stages, which are the initial and stable stage (1993-2000), the transitional stage (2001-2005) and the high speed development stage (2006-2012). It studies and analyzes the change and the relationship between the FDI amount in the evolution of foreign direct investment and the industrial security status, which is in line with the trend that with the added value of FDI amount rising, the added value of industrial security score rises.The evolution line of the added value of FDI amount changes like the wave, and the fluctuation has beenmuch bigger since China’s accession to the world trade organization (WTO). The industrial security state steps into the basic industrial security state (the security score is 49.04) from the unsafe industrial state in the first evolution phase. As the industrialsecurity score declines in the whole during the foreign direct investment evolution process of the automobile industry(thesecurity score is 30.48 in 2012), the security of auto industry is much higher and higher.The foreign direct investmentmotivation of the China’s auto industry isanalyzedin the perspective of industrial security. The foreign direct investment income tax which is on behalf of the government stimulus measures (or regulation) and the industrial security score are negatively correlated. The growth rate of the income tax increases by 1 percent, and the industrial security score rises by 1.78 percent correspondingly. The higher the foreign direct investment income tax rate is, thelower the industrial security score is, and the higher the automotive industrial security is. The ups and downs for the foreign direct investment income tax rate and thechange of the automobile industrialsecurity status are analyzed in detail combining the econometric results and theirtrend variation pictures. Overall foreign direct investment income tax decreases after rising first, and the industrial security scores rises lightly after falling. As a result, the industrial security state enters into the second class (37.87) in the basic security state from the third class (45.79), which is in line with the econometric results. The foreign direct investment income tax rate as a typical government stimulus measure (regulation) reflects the whole attitude of one country to the foreign direct investment, which is an important factor for the foreign direct investment. The government can make the corresponding measures and macro guidance according to the current economic condition and the need of industrial development and security.Finally, it analyzes the foreign direct investment of the foreign automobile industry, and the important enlightment and advises for the foreign direct investment of our country’s automobile industry are concluded. On the basis of the above research, the countermeasures of different levels of macro, meso and micro are arrived at. Guide and regulate the foreign direct investment strictly; strengthen the regulation and association of local governments and the auto Industry Association; educate and improve the awareness of the industrial security and the national consciousness, and promote enterprise independent innovation; and so on.