Study On Foreign Investment Of Automotive Parts Effecting Import And Export Trade Of Automotive Parts

Foreign direct investment not only promoted the development of world economy, but also promoted the development of international trade in the world. In China, foreign investment of automotive parts industry accelerates the development of China's automobile industry, and also actively promotes China's automotive parts import and export business.With China's automotive market prosperity, many transnational automotive manufacturers and automotive parts companies have entered China, hoping to obtain huge profits from the Chinese market. Foreign investment in automotive parts, in addition to providing products and services for the major OEMs in China, is also actively engaged in the export business in China considering the production cost advantage. This paper firstly introduces the status and characteristics of foreign automotive parts enterprises in China, as well as automotive parts import & export trade status and characteristics. Then the paper analyzes how the foreign investment in the Chinese automotive parts effects on China's import and export of automotive parts from positive and negative two aspects. Foreign invested enterprise in China need to import equipment and raw materials from abroad in order to satisfy it's production requirement. China's import trade was promoted by invested enterprise. As extensive sales network in the global and price advantage, foreign invested enterprise intends to sale it's production worldwide, which led to the development of China's export trade.Through analyzing the foreign investment of automotive parts' effect on import and export trade, government could get support how to guide foreign investment in auto parts in China more effectively. The analysis is also helpful for expanding China's import and export trade.