On The Present Two-way Evolution Of FDI

The current world economy has shown a character of globalization. It is virtually an adjustment of the industry structure in a global scale. This adjustment is on the premise of the global marketing and is tinder the condition of the global informationalization. Its main motive power is the foreign direct investment of the MNC, in which the transnational merger has been the most important style.In a general vicwpoint~ as the deeply call~haek in the main American and European stock market, along with the basically formation of the new competitive situation in varied trades of the ~vorld, this great tide of acquisition which has been formed since the mid of 1990's among the world leading corporations is close to an epilogue. Yet it has imposed a notable influence on the orientation of the ~vorld economy.'l'hie opening world market and shareahle information resources have surely provided some positive chances for the specialized small and medium-sized enterprises. However, the world market ~vill still he the battlefield of the main leading corporations. Evidence shows that in the future, only three or more enterprises of the certain trade may win the competition and form the markets leading strength. That's to say~ in the coming competitions, only two kinds of enterprises iiia survive: enterprises either in super scale or in very small size. Most of the small enterprises will turn to become the suppliers for the super corporations and the remnants will muster their technological strength to pursue the production in the certain fields which have been abandoned hy' the super ones according to the comparative advantage principle. They will constitute no menace to the super corporations. On the contrary, there will be no space for the medium-sized enterprises. Since they set an integral description target of manufacture and operation~ they often get some comparative advantages in the certain areas. This make them liable to be merged by the super corporations.'I'he evohiitiomi of the economic glohahizition has fully suhstantiated Marxist theory: The speed of capita! muster is more and more rapid and the world forces of entrepreneurs are moreIvand more shox~'ing off a direct ratio with their scale of consolidation. The need of a constantly expanding interests chases the capital over the whole surface of the globe.In the next one or two years the transriational merger tide will show a period of relative stability. I lowever, this kind of stability is temporary. It's just a course of force hoarding among MNCs for further rivalries in the global market. In that sense, the Chinese market , which is going to enter into the WTO, is no doubt the most strategical and potential market among those all new markets. It has a great attraction towards the MNCs to realize their tactics of globalization. 'This poses newer and higher requirements for our practice of introducing foreign capital.In the practice of absorbing and making use of international investments we always adhere to the basic principle of laying special stress upon the utilization of FDI and emphasizing on the direct interference of the international capital. The evolution of the F!)! in China for the passed 20 years has indicated that the opening of the domestic market is the main impetus to promote our economic and social development. It has played a positive role in developing our national economic, in improving our economic structure, in upgrading our industrial structure, in advancing our manufacture technology, in increasing our export value and in strengthening our international competitive powers. At the same time, introducing FDI has also performed a good function in preventing the profiteering of international lint money, in avoiding the external debt risks and in guarding against the strike of the regional financial crisis. This brings out the fact that the principle laying stress on the utilization of ED! is wisdom and effective.As the N4NC actively participate in the competition of the Chinese direct inves...