On Structure Optimization Of China's Utilization Of Foreign Investment

Today, with the development of global economic integration, China' s huge potential market demand has been attracting a large amount of foreign direct investment (FDI) whose style, scale distribution, regional structure and industrial structure of foreign investment (FI) obviously influence the development ,of both national and regional economy. It carries great significance to optimize the project, regional and economic structures of foreign investment utilization (FIU) so that it can do its best, develop its advantages, and avoid disadvantages.This article includes the domestic and foreign research headway of theories on the utilization of FI and the tendency in China under new conditions. Due to the development of global economic integration, international capital is flowing fast and foreign investment plays an increasingly important role in influencing domestic economy. Lots of domestic and foreign scholars have been studying theories on the utilization of FI in different fields and in different ways. However there is little research on how to optimize the scale and structure of FI so that it can closely cooperate with domestic economy and increase its efficiency.The present situation of China' s FIU is analyzed in three ways: the project structure, regional structure, and economic structure. The analysis of its project structure includes the review of the history of China' s FIU, the progress of the style and scale, and the discussion of China' s new age. The regional structure of FIU includes the kinds and the structures of those rial ions from which come foreign investment, and the regional distribution of China' s FIU. According to the economic structure, structural change of the operational style of FDI' s utilization is expressed as well as its industrial and branch structures in China. FDI' s favorable and unfavorable effects on China' s economic development are discussed and the characteristics of China' s FIU in the following years is also analyzed.On the basis of those structures, the related degree of FIU' s structure to economic development is calculated and it is pointed out that among those three structures some utilization styles make great contribution to economic development and some do less.Advantages and disadvantages of several well-known structure optimization models are discussed and the Target Programme Model is also positively analyzed. Based on statistics of China' s FIU, target programme is designed for the analysis of FI' s project,structure, source structure, FIU' s regional structure, operational style, and industrial structure. In this way cones the optimized structure of China' s FIU. Finally, policy suggestion :?or the optimization of China' s FIU structure is proposed from three points: the project, regional, and economic structures.