The Comparative Analysis On Influencing Factors Of China And Japan’s FDI

With the development of "One Belt and One Road" and Asia Infrastructure Investment Bank,China’s Foreign Direct Investment(FDI)will herald a new stage for China’s opening up after one-decade growth.However,there are also tough issues like economic restructuring,the pressure of economic downturn and the rate fluctuations of Chinese currency.Another Asian country Japan was in similar internal and external environment in 1980s.Based on the above background,this paper selects Japan as the comparative object.First,the paper combs the foreign direct investment theories from two angles of developed and developing country,and then describes the development condition of China and Japan’s FDI in time series.Next the paper analyzes the influencing mechanism of macro factors,which concludes the level of economy,the level of trade,the domestic demand and the policy.At last,after analyzing the development of FDI in both China and Japan and factor analysis on the factors promoting FDI,we can get some conclusions.Firstly,China’s major factors are macro economy,demand and policy in the order of impact.Then for Japan,they are macro economy and international trade.Last,after comparison between the two countries,the policy advice for China are keeping the steady increase of economy,promoting the domestic demand,establishing strategies for FDI and strengthening the open-up and international trade.