Multinational Investment And China's Absorption Of FDI

The world has seen the rapid growth of cross-nation direct investment,boosted by the global economic integration. Transnational direct investment has outnumbered international trade and has become the most dynamic factor the world economic growth. The acceleration of economic integration process has made nations compete more fiercely for the attraction of foreign direct investment (FDI),in particular the multinationals. With China's accession of foreign direct investment (FDI),in particular the multinationals. With China's accession into WTO and its growing integration into the world economy,it is all the necessary for China to implement its diversified FDI strategy and to attract FDI from Norlh America,F,U,Japan and other developed countries and multinationals by taking advantages of is sustained rapid economic growth and potentially vast market,while at the same time continue to introduce investments from Hong Kong,Macau,Taiwan and Southeast Asian countries.Capital seeks for profit maximization. Multinational investments do not share eye to eye with our social and economic development objectives. To attract multinational investments is a two-edge sword and has pros and cons for our national economic development. However,the benefits outweigh its damages. It is therefore the clue of this essay that we need to boost its positive role ad restrict its negative impacts:in other words to make active,rational and effective use of FDI to promote the sustainable development of our national economy.This essay consists of four chapters.Chapter â…  gives a brief account of the concept of multinational enterprises,the characteristics from both the economic and political perspectives and the impact on the world economy.Chapter â…¡ covers FDI investments in China and analyses the two-edge weapon effect on our national modernization drive.Chapter â…¢ analyses the opportunities and challenges for FDI absorption after China's accession into WTO.Chapter â…£ elaborates the problems of FDI in China and offers 6 proposals for the promotion of FDI and improvement of government policies and regulations and sums up 5 experiences of investment cooperation with multinationals.