China's Utilization Of FDI And It's Effects On Export Trade And Technology Diffusion

Utilizing foreign direct investment (FDI) is an important part of China's opening-up policy. Since the reform and opening-up, FDI has played a great role in the national economic growth, but not without side effects. Therefore it is necessary to analyze the current state and economic effects of using FDI profoundly and systematically, and to evaluate the positive and negative effects FDI has brought to the national economy objectively, so that we can find the crucial problems need to be paid attention to and make better use of FDI.Adopting the methods of combining theories and examples, proceeding from the theories of FDI and summing up the current state of using FDI, the paper gives an objective comment on the economic effects of utilizing FDI from different perspectives, finds out the problems that exist, and proposes suggested solutions on the explanation of huge statistics using comparative analysis and the analysis by economic indexes and regress models.FDI has promoted the economic development such as supplementing constructive funds at home, introducing the advanced technology and managerial expertise, creating job opportunities, increasing government revenue, and pushing forward foreign trade and the national economy. However, side effects also appear simultaneously, such as enlarging the economic development gap between the east and west, restricting the readjustment of the national industrial structures, exerting pressures on the sustainable development of domestic ecological environment and the supply of natural resources, and decreasing industrial resource allocation efficiency.This paper further analyzes the effects FDI has brought in promoting national foreign trade and its diffusion effects. In the former aspect, FDI does promote overall nationalexports, and improve the structure of exporting commodities and region, but in the latter, the technology spillover effects are not so notable.In the course of strategic change of using FDI, it is of great theoretical and practical significance to analyze the current state and economic effects of FDI profoundly and systematically, and infer the policies of better utilization of FDI.