Analysis Of Japanese Enterprises Divestment From China

Foreign direct investment(FDI)is a direct investment into production or business in a country by an individual or company of another country,either by buying a company in the target country or by expanding operations of an existing business in that country.FDI not only bring great opportunities for the host country,but also promote an economic growth.Thus,foreign direct investment has been an important issue in academic research.The divestment of FDI refers to the enterprise to withdrawal capital,to give up control of the business and management rights.There are several forms of FDI divestments: sell,liquidation,etc.FDI divestment of existing studies focused on the theoretical level,research on aspects of Japan's FDI divestment is not sufficient,and the lack of large amounts of data and examples demonstrate.The current achievements in the reseach about FDI divestment is focused on the theory.The research about Japanese FDI divestment from China is still very lacking.Based on "KAIGAI JIGYOU KATSUDOU KIHON CHOUSA" by METI and the status of Japanese FDI on China in recent years,using qualitative analysis,chart analysis,and experiential summary method,this paper tries to summarize the influence factors of Japanese FDI withdrawals on China and the divestment's impacts.For the benefit of the enterprise itself,multinational companies decide whether to withdraw.The decision is mainly influenced by three aspects: the changes in local investment environments,the changes of Japanese firm's comparative advantage and the changes in the international economic environments.Meanwhile,FDI divestment will change the comparative advantages of the two countries.