China's Two-way Direct Investment Development Path And Mechanism

The global economic pattern has undergone new changes in the background of the new technological revolution.The developed economies have developed anti-globalization trend while the developing economies represented by China begin to rise.Thirty years of reform and opening process,the establishment and improvement of the socialist market economic system with Chinese characteristics has accelerated the process of opening to the outside world,and the Chinese economy has entered a new normal state.The Belt and Road initiative and the Reform of the Supply Side are great practices of China's economic reform and transformation.Going global strategy is important for China to build the new system of an open economy.Global foreign direct investment(FDI)has entered a new historical crossing.With the slow recovery of the developed countries' economic and the deep adjustment of the global industrial structure the global FDI changes from stable growth to volatile growth.The global FDI is driven by emerging and developing economies which shift from developed countries such as the US.Transnational corporations reorganize the global strategy,and the investments focuse on the promotion of R&D innovation efficiency.Innovative industries and strategic emerging industries are favored by investors.Global industry and regional investment patterns and investment policies are in great adjustments,which provide the unprecedented opportunities for China's inward and outward foreign investment developments.Nowadays,China has become a major inward and outward direct investment in the world.China's OFDI in 2015 was 145.57 billion dollars,ranking second in the world,exceed the threshold of actual utilization of FDI by 126.67 billion dollars for the first time and becoming a net-out flow of FDI.The western mainstream economic theory of foreign direct investment,the theory of FDI in developing countries,and the theory of firm-heterogeneity suffered the limitations when interpreted China's two-way direct investment development.This study integrated the theories of foreign direct investment,international trade and international capital flow to construct an independent analytical framework.The framework is the inheritance and integration of individual theories systematically,holistically and logically.It is a new integration of concepts and theories about developing country's inward and outward foreign direct investment.This investigation constructed a research framework of China's two-way direct investment development,which covered theoretical research and realistic analysis.Based the facts,our study summarized the main development characteristics,concluded the main development stage and pathway,focused on the development mechanism.Combining with China's two-way direct investment development practice we gave advices of construction and improvement the regulatory system.This research is a new theoretical breakthrough on establishing the new opening economy system of China.The research of China's two-way direct investment development path is a new statement about China's IFDI and OFDI the development process of the past,the current and future.We conclude development path of China's two-way direct investment in three stages which are named Accumulation stage,Initiative stage and Strategic developing stage.China is forming a two-way FDI platform and creating a new pattern with Introduction and Going Out together.The research of China's two-way direct investment development mechanism is mainly based on the Game Theory analysis about nations and enterprises investment strategies.This systematic mechanism study is from the enterprise,industry,domestic regional and national level.This part of China's two-way FDI Development Mechanism research takes a two-way FDI platform as object.We are constructing a Game Model to explain how China as a two-way FDI platform making FDI Strategies with different Economies.In order to push ahead domestic industrial restructuring through bilateral FDI between China and developed economies,this study is based on the intra-industry trade theory,and run an empirical test to find the factors which are influencing bilateral FDI of China and US in industrial level.Going out strategy which is the key of building an economic power is promoting the Chinese enterprises' internationalization.This part of China's two-way direct investment Development Mechanism research takes enterprise as object to explore multinational corporations' strategies.Observing Chinese enterprises' strategies in individual and in group in evolutionary game model,we find out that China's enterprises in cluster to promote OFDI.The evolutionary game model of government's incentive to Chinese state-owned enterprises and private enterprises shows that the advantages of state-owned enterprises are more than private enterprises during the process of OFDI,and the government incentives are more influential to private enterprises.This study keeps on exploring the development mechanism of Chinese Enterprises' strategies in domestic regional level.It analyses the coupling mechanism of two-way direct investment and enterprise innovation in various regions of China.Then we supply the suggestions about forming government policies.This study is likely to promote the process of establishing a new open economic system under the background of Innovation-driven Development strategy.Learning the international direct investment regulation system,we give reasonable measures and suggestions about establishing and perfecting the two-way direct investment regulation system in China.Innovating FDI management system,building a new system to promote Going Out Strategy,reinforcing the reform of foreign exchange management system,are the ways to take back assets from global markets while exporting Chinese capital into it.China is taking an active part in global economic governance and promoting its reform.The research of China's two-way direct investment development path and mechanism helps us to understand the Chinese socialist economic construction rules in all.It is easy for us to understand dialectically about the continuity,transcendence of inward and outward FDI during Chinese reform and opening process.