The Development Of International Direct Investment In Different Areas Of China To Attract Foreign Capital Strategy

The development of foreign direct investment and its effects are one of the most active study fields for western scholars after the Second World War, and with the enlarging scale of FDI inflows, the development of FDI and its effects on Chinese economy have also been importer study fields for domestic scholars. Study documents concerning FDI are numerous, but documents studying the time characters and space characters of FDI development, especially from the angle of the unity of time and space are rare. Also, documents concerning the space distribution difference of Chinese FDI are numerous, but documents studying Chinese different regions'different strategies of absorbing FDI according to their development stages of open economy are rare. Now, at the new stage of Chinese open economy, how to improve the sustainable development level of Chinese economy by absorbing and using FDI is a subject worthy of attention,and it is very important to study Chinese different regions'strategy of absorbing FDI on the basis of the further study on the development law of FDI.Combining FDI theory, time and space theory, location theory, economy development stage theory and using multiple study methods, this thesis concentrating FDI development law studies from the angle of the time and space, especially from the unity of time and space, and Chinese different regions'strategy of absorbing FDI at present.This thesis believes that global FDI development shows long-time growth trend and short-time fluctuation character, and it is the unity of long-time growth and short-time fluctuation. Economic globalization, especially technological progress, system change, policy adjustment and international competition in the world are the major factors that cause the long-time growth trend of FDI. The cyclical changes of global economy and international merger and Acquisition of TNCs are important factors that cause the short-time fluctuation of FDI. The space distribution of FDI is influenced by the changes of international circumstances, the competitive advantages of investment enterprises and the location advantages of host countries, and also influenced by different types and different intentions of FDI. Furthermore, in recent years, the outflow investment of major countries shows relatively stable regions preference, and FDI also shows the character of space agglomeration. The development of FDI has the character of the unity of time and space. One of specific space distribution structure of FDI correspondences one specific time, and as time goes, the space distribution structure changes dynamically. The essence of the changes of FDI geographical space distribution is its pursuit of economic space or profit space.By further study, this thesis points out that the development of FDI entering China in recent thirty years also shows obvious stage character and growth trend, and the investment way, the source, the investment industry and itself quality of FDI show degree changes. Just as serious imbalance of the space distribution of global FDI, both absolute difference analysis and relative difference analysis show that the difference degree of the space distribution of FDI entering China is very serious. Chinese area-oriented open policy, the difference of market development, opening degree, market scale, available scale of FDI and infrastructure of different regions are major causes that bring about the imbalance distribution of FDI in Chinese different regions. For whole economy, FDI promotes Chinese capital formation, technology progress, export enlargement, structure improvement of industry and export goods, but at some degree, it also causes market monopoly, gap expansion of regions development, restrain of domestic capital and loss of state profit.With regard to Chinese strategy of absorbing FDI, this thesis considers that it is also a problem of the unity of time and space, namely, Chinese different regions should adopt different strategies of absorbing FDI according to their specific development stages of open economy. As a relative backward country, in order to achieve the sustainable development, China needs to go through three tandem stages, namely, scale expansion and structure lifting and factor optimization. Every stage shows distinct stage character. Likewise, as a geographical large country and a populous large country, the development level and opening degree of Chinese different regions presents very large difference. East regions have basically accomplished the stage of scale expansion, and began to change to the stage of structure lifting, but mid and west regions are still in the stage of scale expansion, and the constraints of its further development they faced with are not resource constraints and market constraints and profit constraints caused by excessive scale expansion, but local resources and factors have not been adequately exploited because of shortage of capital. Consequently, Chinese east regions'strategy of absorbing FDI should be adjusted according to the need of structure lifting. The large-scale pattern should be given up, and the emphasis of absorbing FDI should be adjusted to improve the quality and the benefit of FDI and to advance local industry structure. According to Chinese mid and west regions, absorbing FDI and improving local opening level are still their major strategy currently and in the future. Mid and west regions should make full use of the opportunities of east regions'strategy adjustment for absorbing FDI and the transfer of many industries, especially labor-intensive industries, and accelerate the step of absorbing capital, enlarge the degree of introducing capital, strengthen absorbing capacity, take many ways to absorb FDI and domestic capitals discharged from east regions to advance local economic development.