The Influence Of Japanese Manufacturing FDI On China’s Manufacturing Industrial Structure

Foreign direct investment is an important means which multinational companies implement internationalization, and it is also the main mode of developing countries introducing foreign capital. Foreign direct investment plays an important role in the international capital flow.Along with the rising of foreign direct investment scale, foreign direct investment has become an important power to promote the development of Chinese economy, and also has important effect on a country’s industrial adjustment. Manufacturing industry, has been the department absorbing foreign direct investment most. Since China’s accession to the WTO,70%of the foreign capital flows to the manufacturing industry, foreign direct investment on China’s manufacturing industry has great effect on upgrading industrial structure. And manufacturing sectors are the largest which Japan invests, therefore, to study the relationship between Japanese manufacturing FDI on China’s manufacturing and adjustment of manufacturing industry structure is of great significance.Based on the general theory of the impact of foreign direct investment on the industrial structure, analysis and discuss the influence of Japanese manufacturing investment on China’s manufacturing industry structure upgrading. From theory, through the combing and analysis of the existing literature at home and abroad in recent years, and after understanding the theory of the effect of foreign direct investment on industrial structure, And around the following aspects to disscuss on influence of the Japanese manufacturing investment on China’s manufacturing industry.Firstly, analyze the changes and development of Japanese manufacturing investment in China manufacturing industry and China’s manufacturing industry structure. And discuss the mechanism of action of the infulence of Japan’s FDI in China’s manufacturing industry, and theoretically analyze the impact of the Japanese manufacturing FDI on China’s manufacturing industry structure in China. Secondly, through the time series data,inspect the impact of Japanese manufacturing investment in China on manufacturing industrial structure. To a deeper understanding of Japanese FDI on China’s manufacturing industry structure in China, establish four indicators, and separately carry on the empirical test, then analyze the test results, and put forward the corresponding policy.Through empirical test, the conclusion is as below:the Japanese manufacturing investment in China have a positive effect on the Chinese manufacturing industry structure, and long-term impact is greater than the current period. Embodily, Japanese FDI in China’s manufacturing has a positive effect on China manufacturing job structure and technical structure supererogation, and empirically has a negative effect on China’s manufacturing output structure and asset structure supererogation.