Historical Development Of Sino-U.S. Bilateral Direct Investment Relations And Its Influencing Factors

China and the United States are not only the two largest economies in the world,but also those with the greatest differences in trade,investment and finance.Although China and the United States are respectively the largest outward FDI countries in emerging market countries and the largest outward FDI countries in developed countries,the scale of bilateral direct investment between China and the United States is far lower than the volume of the two countries,which is a huge contrast with the scale of bilateral trade of more than 60 billion U.S.dollars per year.In theory,there is a mutually reinforcing relationship between bilateral direct investment and trade.The development of bilateral direct investment between China and the United States helps to alleviate the long-standing trade imbalance in bilateral trade and the resulting trade conflicts.However,for quite a long time,Chinese enterprises' direct investment in the United States has been short-cut.Until 2015,China's direct investment in the United States exceeded that of the United States.Thus,there is a significant asymmetry between the bilateral direct investment relations between China and the United States.Since Donald Trump came to power,he not only inherited the selective investment protectionism policy of his predecessor,but also further strengthened this policy by signing?the Foreign Investment Risk Review Modernization Act?(FIRRMA),which is obviously aimed at China.Based on this background,this paper studies the historical development of Sino-U.S.bilateral direct investment relations and its influencing factors.Its theoretical and practical significance is mainly embodied in the following aspects: by studying the historical development of Sino-U.S.bilateral direct investment relations,especially by deeply analyzing its influencing factors,it can expand the scope and perspective of Sino-U.S.economic relations,thus promoting domestic academic circles to study Sino-U.S.bilateral direct investment relations.The study of economic relations will help domestic academia to predict and judge objectively and accurately the trend of Sino-U.S.economic relations,so as to provide a theoretical basis for Chinese decision-makers to better implement the strategy of opening to the outside world,and provide a decision-making reference for Chinese enterprises to better pursue benefits and avoid disadvantages in the process of developing direct investment in the United States.According to the research idea of "asking questions-analyzing problems-solving problems",the paper is divided into three parts(six chapters).The first part(including Chapter 1)is the introduction.Based on the background,significance and literature review,this paper puts forward the questions to be studied in this paper,namely,"Why the scale of Sino-U.S.bilateral direct investment has not reached the normal level","What factors have affected the development of Sino-U.S.bilateral direct investment relations","How to continue to promote Sino-U.S.bilateral direct investment in the context of the ups and downs of Sino-U.S.bilateral economic relations".The second part(including Chapter 2,Chapter 3 and Chapter 4)firstly reviews and analyses the historical development and main characteristics of Sino-U.S.bilateral direct investment relations,and from an empirical point of view,analyses the impact of Sino-U.S.political relations on bilateral direct investment,and concludes that China's direct investment in the United States is more vulnerable.Chapter 3 and Chapter 4 of this paper respectively make theoretical and empirical analysis on the main factors affecting the development of China's direct investment in the United States and the main factors affecting the development of the United States' direct investment in China.This paper holds that partisan politics in the United States is the main driving force for the establishment and development of the Commission on Foreign Investment in the United States(CFIUS),and that the review of "national security" carried out by the Commission on FDI has become a "roadblock" for the development of China's direct investment in the United States.In order to prevent China from acquiring high and new technology,the U.S.government not only restricts China's direct investment in the United States,but also adopts the combination of export control policy and investment restriction to restrict the United States' direct investment in China.The selective investment protectionism policy implemented by the U.S.government against Chinese enterprises has become a major obstacle to the development of bilateral direct investment between China and the United States.This paper holds that institutional factors are also the main factors affecting the development of the United States' direct investment in China.This kind of institutional factor mainly influences the United States' direct investment in China through two ways: the quality of the host country's system itself and the relative institutional distance between the host country and the United States.At the same time,China's eastern,central and western regions have different advantages in attracting FDI from the United States.When formulating the policy of attracting FDI,China should adjust measures to local conditionsThe third part(including Chapter 5 and Chapter 6)firstly analyses the bilateral investment treaty(BIT)negotiations between China and the United States,which are currently on hold,and the impact of ? the Foreign Investment Risk Review Modernization Act?(FIRRMA)on the bilateral direct investment relationship between China and the United States.This paper argues that the bilateral investment treaty negotiations between China and the United States have not been successfully completed during President Obama's term of office,mainly because of the conflict between the two sides in terms of core provisions,but the negotiations have already had the basis of moving from conflict to convergence.This paper holds that the Chinese government should actively promote the resumption of bilateral investment treaty negotiations between China and the United States based on the obvious intention of ?the Foreign Investment Risk Review Modernization Act?(FIRRMA)for Chinese enterprises,and Chinese enterprises should take forward-looking measures to deal with the adverse impact of the Act on investment in the United States in advance.This paper looks forward to the development of Sino-U.S.bilateral direct investment relations,and holds that in the long run,with the enhancement of Sino-U.S.economic competitiveness,Sino-U.S.bilateral direct investment relations will face a difficult adjustment period;and for a long time before this arrival,Sino-U.S.bilateral direct investment still has great room for development.The innovation of this dissertation is mainly embodied in three aspects: firstly,compared with the existing research results of China's FDI to the United States,Chapter 3 further explores the issue of American partisan politics behind the CFIUS;and secondly,makes an empirical study of the respective advantages of China's east,central and western regions in attracting FDI from the United States;Thirdly,based on the institutional perspective,this paper analyses the conflicts and their causes in the SinoU.S.bilateral investment treaty negotiations,and it holds that the negotiations have the basis of moving from conflict to convergence,and puts forward some feasible policy recommendations on this basis.