The Effect Of Foreign Direct Investment In China's Manufacturing Industry And The Determinants Of Research

2010 is the 31st anniversiry of the China Economy Reform and Gate Open, whilst the world economy had become very complex and changeable. With rapid growth of economy and deepening of market policy, China is being the 2nd to the United States as the host country of world FDI and the key world economy competition market and emerging manufacture center with establishment of modern manufacture regime for cheap and qualified products. This paper is to analyze the logic between the economy growth and inflow of FDI and to clarify the causes of economy development with dependent on the foreign investment and of constrains on the sustainable economy growth in China. In order to proactively utilize the world advance manufacture capital and technique for solutions on contradictions in China manufacture and economy development, this paper is also to provide some decisive viewpoints and evidences to proceed with the appropriate macro policy for foreign investment as well as company management.Taking the angle as host country and with focus of a major argument of"positive effect—〉determinants—〉negative effect—〉attributions", this paper conducts many statistical and experimental tests based on plenties of macro economy data and case studies on multinational enteprieses. The study is summaried to 3 aspects: positive and negative effect; macro determinants and micro strategic rationales; attributions to negative effect. The respective chapter keeps close integration but sufficient independent to each other. Such research logic and structure offer commonplace basis for other potential valuable opinions.With reference to most update research results and methodologies, this paper uses the statistic and metrology methods inclusive of Pearson Correlated Index, Kaufmann Index, Least Squares and Multi-regression Module, selects Yangtze River Delta and Pearl River Delta as study objective for cluster economy, and chooses Coca-Cola, Siemens etc. for case study on multinational companies. Especially, the author implies 16 M&A deals via metrology meassessment on behavior bias on company valuation and investment failure. The methodology and result of the study have forward position.