Can FDI Solve The Problem Of Employment In China?

With the economic globalization, FDI has an increasing impact on Chinese economy. This thesis investigates the possibility of taking FDI as a remedy for employment problem in China. This thesis first selects fourteen countries and regions as targets and assumes their manufacture sectors can be fully transferred to China. Based on this assumption, the thesis estimates that the new job opportunities brought about by this transfer is 119,428,700 if taking output labor ratio variation into account and 61,915,400 if not. According to the data released from the 5th census, the surplus of labor supply over demand is approximately 167,080,000. We concludes that FDI can by no means meet the gap between demand and supply existing in Chinese labor market. We cannot merely count on FDI for the eradication of employment problems in China.