Research On Attracting Foreign Direct Investment In Western China

With new changes in international economic system, Foreign Direct Investment (FDI) has been a central aspect of globalization. It plays an extraordinary and growing role in global'business. '.At the beginning of the 21st century, Chinese central committee promulgated to implement Great Western Development Strategy. It has been a new era for the economy of western China. Globalization and China's entry into World Trade ? Organization bring more opportunities and broader space for Western Development.The most important obstacle to the development of China's west is capital scarcity and insufficiency which is caused by unfavorable investing environment, serious capital loss, etc. Domestic investment cannot satisfy that requirement. So, research on foreign capital utilization, especially foreign direct investment (FDI), has become one of the most essential problems in Western Development. To improve the investment environment and absorb more foreign direct investment is the precondition and assurance of that strategy. Therefore, it has great significance to study the conditions of attracting FDI in western region systematically.This thesis demonstrates the positive impact of FDI in global and regional economy by theoretic analysis and case study. Based on the'actual situation of China's west, comparing and drawing lessons of other countries, the necessity and feasibility of attracting FDI are fully discussed, and a series of exercisable proposals are put forward.This paper lays stress on the importance of FDI in western economy. The author makes an intensive study of the opportunities and challenges western China faces in attracting FDI. Characteristics of investment environment in costal region and western region are summarized and compared. In the last part, types of China's absorption of FDI are mentioned, especially two new types suitable for western China which.are BOT and Mergers & Acquisitions.The decisions of investment in western China will surely be made morescientifically, democratically. Great development of western China will definitely serve as a bridge connecting foreign investors and the Chinese market, and promote China and the world to achieve common economic development and prosperity.