Studies On China's Utilization Of Foreign Capital

Since 1978, the government of China has been keeping on adopting the policy of opening up, using foreign capital actively, improving the policy system of foreign capital, and enlarging opening fields thus achieved a huge success. According to the fact that foreign capital has been playing a key role in China's economic development, it is important and meaningful to analyze the foreign capital policy and corresponding strategy. This paper discusses China's utilization of foreign capital(CUFC) in the following aspects:By analyzing the history of CUFC, it classifies the historical phases of CUFC, illustrates the main characteristics of CUFC at current time, studies the foreign capital's effects to China's economic growth, and analyzes the reasons of China's success on utilization of foreign capital and the challenges after China's WTO entry.By analyzing the forming process of legal policy system of CUFC, it summarizes China's legal policy system of foreign capital before joined WTO, emphasizing on the China's adjustments of policy for joining WTO.It also discusses the effects, which are brought by the reform of China's foreign economic system, on investment activities of foreign enterprises, summarizes the comments of enterprises on China's reform for joining WTO, points out the new characteristics of investment activities of foreign enterprises, then anticipates the growth trend of CUFC.Finally, it looks forward to the tendencies of policy change of CUFC and the increase of China's foreign capital absorbing. Accordingly, it analyzes and anticipates the probably policy change of CUFC in the new century and points out some advices about policy building for the development strategy of utilization of foreign capital to China's government.