| In 2014 China has firstly become the largest developing country to absorb foreign investment after 30 years of joint venture and cooperation.2016?World Investment Report?shows that in 2015 China's foreign capital inflows increased by 6%,reaching$135 billion 600 million.Since the 1980s,the continuousfy increasing scale of FDI plays a positive role in China's automotive industry's development.This paper firstly reviews the theory of outward foreign direct investment and the relative theory of FDI's effect in industry development,this paper describes the change when FDI inflows to China's auto industry.Then it leads to the characteristics of FDI in China's auto industry.This paper also analyze the factors that FDI enhances the development ability of China's auto industry,finds that FDI greatly upgrades the industry scale,it improves the reserve of technical talents and industry's technology to some extent,it helps to upgrade the whole structure.What's more,it's beneficial to trade with other countries.However,there are some negative effects exist what FDI bring to auto industry,like foreign investors challenge the share ratio limit policy in auto industry,multinational companies block the technology?local auto companies have poor ability to absorb technical knowledge and are short of high-tech talents,the local brands face some problems.Finally this paper proposes a feasible and effective recommendations to deal with the above problems.Firstly the government should enhance to regulate and control to release share ratio limit step by step.Secondly the local companies need to increase investment in research and development.Thirdly the companies strengthen the learning and absorption capability.Then take Geely as example to analyze how to improve the human resources development.In the end the local auto companies should have clear positioning,promote cooperation between local enterprises and seize the new development opportunity. |
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