The Research On Problems And Countermeasures Of Local Government Promotion To Foreign Investment

Since the establishment of reforming and opening-up as the basic state policy,investment promotion has become an important measure for Chinese local government at all levels to drive local economic development.Due to the significances of utilizing foreign investment in accelerating capital accumulation,raising industrial and technological levels,stimulating local economy and improving people's living standard,investment promotion is highly valued by local governments who actively use all sorts of ways to attract foreign investment.However,with the changing of global economic environment and deepening development of domestic market-oriented economy,as well as policies regulating to investment promotion measures by the central government,local governments encounter investment regression and promotion restriction.Therefore,under current investment circumstance,knowing how to break through the realistic predicament and upgrade competitiveness in investment attraction would be more significant for government promotion.In the paper,the author shares some real cases on local government promotion,combining his years' experiences in dealing with foreign companies and local governments,and makes research and analysis on problems relating to promotion.The paper holds that there are logic differences between foreign investors,who generally prefer doing rational and comprehensive analysis to potential investment destinations about factors affecting the investment circumstance evaluation and decision,and local governments,who mainly focus on potential value that the investment could bring.However,most government promotions can't catch the site selection logic of foreign investors,neglecting improvements of investment circumstance and transforming of government function,paying less attention to cultural differences and qualified promotion team establishment and acting weak in surveillance and performance assessment.These problems irrevocably bring negative effects to government promotion performances and results.Faced with current economic situation,the local government should adopt countermeasures by improving investment circumstance,transforming government function,upgrading administrative level and efficiency,well understanding cultural difference,changing promotion concept and measure,enhancing specialized promotion staff and team,creating a reasonable performance evaluation as well as a legal and credible government administration environment,so to strengthen government promotion competitiveness and break through the foreign investment promotion dilemma.