Effect Of Foreign Direct Investment On China’s Export Commodity Structure

Under the influence of the global economic crisis of 2007, global economic growth turned into the downstream channel. With global demand wretched and the impact of trade protectionism, China’s exports encountered unprecedented challenges.In order to address the plight of exports, China needs to improve high-tech goods’ exports, and optimize the export commodity structure. Meanwhile, China’s foreign direct investment developed very fast. The average annual growth rate of China’s foreign direct investment were up to 39.8% between 2004 and 2013. In the current China government encourages qualified enterprises to "go out" and the country needs to optimize the export structure. Studying the relationship between China’s foreign direct investment and export commodity structure has important theoretical and practical significance.Firstly, based on the "Foreign Investment Statistical Bulletin" and "China Statistical Yearbook", I analyzed China’s foreign direct investment and exports structure during the period between 2004 and 2013, and then I used export goods data from the UNCTAD database to figure out the changing trend of China’s export structure, and finally,from the point of view of the difference of industry and area, I used gray relational analysis to analyze the impact of foreign direct investment on the export structure. The results show that to promote China’s export structure, China should invest more in Asia and Latin America, and China should focus its investment on manufacturing, mining, transportation and IT services industry.