The Effect Of China's Accession To The WTO On Foreign Direct Investment In China

A large number of WTO's agreements have direct or indirect relationship with foreign direct in vestment. They will have significant impact on the law and policy concerning FDI in China and make our legal system move toward intensified investment protection,rising investment treatment and global investment liberlization to a greater extent.Accordingly, these will affect FDI in China and make FDI subject to the international institutions.This paper makes a research on the effect of China's accession to the WTO on FDI in China.The first part introduces the WTO Agreements which are related to FDI and China'commitments.The second part studies the entry mode choice of MNEs after China acceded to the WTO.Empirical study is done with the method of econometrics to try to find the relationship between tariff rate and FDI in China and two other developing countries which have already been members of the WTO.The third part analyses the effect of China's accession to the WTO on the different sources of FDI by studying the status quo of different sources,the intensity index of FDI,the industry structure,the motives and strategies of investment of the major sourcing countries and regions.The fourth part studies the transformation of the variables that influence the form of FDI after China's accession to the WTO and the change of three different forms of foreign direct investment enterprises from Jan.2001 to Aug.2002.The conclusion is that after China's accession to the WTO,FDI will continue to be the major entry mode of MNEs,the FDI from U.S. and EU will increase greatly and the share of wholly owned foreign enterprises is still to be rising.Suggestions are given on the bases of that.