An Analysis Of The Impact Of U.S.FDI On China's Trade Structure

Since the reform and opening up 40 years ago,Sino-US economic and trade relations have maintained a stable state of cooperation as a whole.There is comparatively sufficient competition and complementarity between these two countries.At present,due to the increasing trade friction between China and the United States,and the circumstances of unilateralism and protectionism,China is facing a new round of challenges in attracting foreign direct investment.This is also the reason why the complex relationship between foreign direct investment and trade development has become a hot research topic in the field of international trade.Thus,we will study the relationship between U.S.FDI and China's trade structure from the perspective of FDI investment,and propose the optimization suggestion for China to deal with the negative impact of international trade and FDI fluctuations,as well as to optimize the policy formulation such as the introduction of foreign capital and the optimization of trade structure.Based on the macro and industrial perspective,this paper aims at analyzing of the impact of U.S.FDI on China's trade structure and its optimization strategy.This paper analyzes the impact of U.S.FDI on the import and export of the three types of industries in China's trade structure by selecting the proportion of U.S.investment in labor-intensive,capital-intensive,capital-and-technology-intensive industries.In addition,on the base of international macroeconomic theory and Stata data analysis software,this paper analyzes Granger causality between U.S.FDI and China's import and export trade.Meanwhile,by using the multivariate linear regression equation,this paper empirically tests the impact of U.S.FDI on China's import and export volume,and further analyzes the impact of U.S.FDI on the import and export of corresponding industries in labor-intensive,capital-intensive,capital-and-technology-intensive industries.The result shows that FDI in the United States has a significant impact on China's import and export trade structure at both the macro and the industrial structure level.From the perspective of import,the results indicate that U.S.FDI and China's import trade are Granger causality;U.S.FDI has a significant impact on China's import and export trade;U.S.FDI has only a significant positive effect on China's import trade structure in capital and technology-intensive industries.The conclusion provides a theoretical reference for China to face the negative impact of the future fluctuation of international trade and FDI,as well as to formulate the policy of introducing foreign capital and trade openness.Suggestions are as follows:Focus on changes in FDI and global trade structure.Improve the FDI investment structure in China,further expand the opening up to the outside world,and make full use of the coordination role between the systems.