The Research On The Influence Of Japan’s Direct Investment In China On Sino-Japanese Trade

Japan is one of the most important economic cooperation, sources of FDI and the tradingpartners of China. In2011, the volume of Japan’s direct investment in China is63.5billiondollars, Japan is one of the largest source of foreign investment of China. Simultaneously, thevolume of sino-Japanese trade is3428.9billion dollars, Japan is the fourth largest tradingpartner of China. Japan’s direct investment and Sino-Japanese trade are important drivingforce for economic development of China. However, at present there are some troubles inJapan’s direct investment and Sino-Japanese trade, such as the investment scale keepsrecession, the investment of Energy saving and environmental protection needs to beperfected, the high volume of sino-Japanese trade is hovering, the trade deficit of China isobvious. Therefore, It is beneficial for studying the relation between Japan’s direct investmentin China and Sino-Japanese trade.In order to discuss the development history, current situation and issues of Japan’s directinvestment in China and sino-Japanese trade, this article first analyzes the volume andstructure of them. It further using the volume of China’s exports and imports to Japan asdependent variables, the volume of Japan’s direct investment in China, the cumulative volumeof Japan’s direct investment in China, per capita GDP of China, the annual average exchangerate of RMB against YEN, residents’ consumption expenditure of China, amount of formattedcapital of China，government procurement expenditure of China as independent variables,choosing the best model through many tentative computing, analyzes the relation betweenJapan’s direct investment in China and Sino-Japanese trade with Empirical research. Theresult shows that Japan’s direct investment in China can pull the scale of China exports toJapan and the scale of Japan exports to China. Finally, this article puts forward some advice,such as expand the scale of Japan’s direct investment in China, promote the Japan’s directinvestment in China diverting to non-manufacturing, lead the Japan’s direct investment inChina diverting to Western China, accelerate the process of regional economic integrationbetween China and Japan.