Interests Of Chinese Foreign Direct Investment

After 20 years' reform and opening-up, China is now melting together with the world economy by the reciprocal thinking of "leading-into" and "going-out" .The expansion of investment scale, the Asian-Pocificizing of investment area, the resource-processizing of investment point and the orgnizationizing of investment subject have become the present new characteristic of FDI. Tightly seizing the opportunity of the improvement of the investment environment both in and abroad, Chinese FDI may enter a better stage of development. Carrying out the strategy of " going out" and engaged in FDI can bring about a lot of interests for Chinese economy development. Discussing the questions above has important practical significance for China to draw up the right FDI strategy and policy and heighten opening-up level. The general theories of FDI are mainly such basic questions as follows : Why is the enterprise engaged in FDI rather than FII; How does the enterprise carry out FDI; The key factors of area-choosing when the enterprise carries out FDI. So, discussing the effectiveness comparatively from the angles of economic growth, industrial structure, technology innovation and improvement of enterprises' international competitiveness has great theoretical significance to perfect the traditional theory of FDI.To discuss the interests of Chinese FDI, I have analyzed it systematically in the article from several parts below:First, discussing the theory of FDI comparatively. From the angle ofdevelopment, the theory of FDI have been evolving through tow ways: first, take the national economical interests as starting point of analyzing, study the changing law of FDI and the effect of FDI on investment mother country and host country. All these theories are called macro theory of FDI. Second, around the center of enterprises' economical interests, study why, how and where are the MNCs engaged in multinational operation activities. All these theories are called micro theory of FDI. Through the discussing of these theories, we can find theoretical basis for analyzing the interests of Chinese FDI.Second, I have summarized the development , current situation, scale and prospects of Chinese FDI, and supplied with practical ground for the discussing of Chinese FDI interests.Third, I have discussed the interests to Chinese economy brought by FDI. I expound the relation between making use of foreign capital and foreign investment, and then discuss the macro-economical effectiveness to Chinese economy growth, domestic employment and balance of payment brought by FDI. On the basis of analyzing the industrial conduct effectiveness,conduct mechanism, I have discussed the industrial structural effectiveness brought by FDI to Chinese economy, analyzed the relation between FDI and technology innovation theoretically and discussed the technology innovation effectiveness of Chinese FDI. I first regulate the concept of enterprises' international competitiveness, then analyze the relation between FDI and the enterprises' international competitiveness theoretically. According to a practical investigation, I get that FDI is an important means to improve the enterprises' international competitiveness. On the basis of comparison internationally of Chinese enterprises' competitiveness, I put forward the countermeasure and proposal of improving Chinese enterprises' international competitiveness by FDI.Forth, to get the most economical interests from FDI, I have compared the ways of Chinese FDI, analyzed the relation between area-choosing in FDI and competition strategy, and put forward the best area-choosing policy of Chinese FDI. At last, I point out that "we should do something and not do something", and analyze the reason and effectiveness of capital-withdrawing.Fifth, Interests and risk both exist in Chinese FDI,I emphasized on the analysis of three kinds of risk( institution, foreign exchange, technology ) and its prevention from the micro angle of enterprise. Also, according to the fact that the international abrupt accident and crisis often brin...