Study Of Chinese Enterprises' Enterprises: Theoretical Model And Policy Thinking

This essay starts from economic globalization and the increased liberalization of international investment and has a foothold at alternative strategy characteristics of Chinese economy development and opening-up in the early twenty-first century. In reference of the frontier accomplishments of western FDI theory, this essay puts forward the new pattern of "effective capital-type FDI". On this basis, this article puts an emphasis on illustrating the Chinese enterprises' industry choice, ecological choice and policy meaning when developing FDI.This article breaks through the normal annalistic frame of western theories of FDI, and makes it clear for the first time that new theoretical model of "effective capital-type FDI" suiting to the developing great nations. Three key abilities for "effective capital type FDI" include: the ability of reassembling essential "factors, the ability of forming value-added chain in transnational industry and the ability of appropriately reacting to the market condition of host countries. On the basis of combining with the characteristics of Chinese "great nation economy", the theory synthesizes western mainstream and no prevailing theories about FDI and supplies a new explanatory frame for different Chinese enterprises to enter transnational investment field. Based on the theory of "effective capital-type FDI", the author goes step further by putting forward the choice norms of three industries for Chinese enterprises' FDI, which is ecological comparative priority of industry combination, interior market rate and high degree and same nature of structure, The three choice norms of industry act as the enlargement and supplement of the "effective capital type FDI". It aims at enlarging the market effect of Chinese enterprises' FDI. At the same time, the author thinks that rational ecological location is one of the basic binding conditions for FDI'S validity. According to the specialty of transnational investment, the author puts forward the standards of location selection for Chinese enterprises to develop FDI including standards of starting costs, location surplus of investors and the degree of location relation, which provides theoretical basis for China to form diversified structures of international investment. And these are the important component of the "effective capital type FDI" theory. The new ideas of policy thinking are another characteristics of this essay. This essay brings up basic directions for the policy transformation of Chinese FDI by dissecting its policy targets. That is to transform simple encouraging policy system into the three-dimensional compound policy system of "encouraging-restraining-neutralizing". The essay analyses the key to improve the validity of the policy of FDI. It isto strengthen the coordination between industry policy and ecological policy through reasonable policy collocation. And this leads to the two different coordinating policy thinking: using industry to decide area and using area to decide industry. At the same time, the author analyses that to rebuild relations between government and enterprises according to the general law of transnational investment is the guarantee of valid supplement for "encouraging-restraining-neutralizing" policy system. So the policy thinking above is the expanding analysis of "effective capital type FDI" theory model.In all, making the "effective capital type FDI" as the clue, the essay answers a series of fundamental questions about Chinese enterprises' "turning to the international market" to develop foreign direct investment and puts forward a three-dimensional policy frame of "encouraging-restraining-neutralizing". As a result, it is a new annalistic format with policy thinking that differentiate from western normal FDI theories. This study not only benefits for enriching the Marxism theory of international capital movements, but also show reference values of establishing Chinese characteristic theory system about developing socialism countries' foreign direct investment.