Probing The Problems Of Importing Foreign Capitals And Strategies In China

Since the reform and open policy, China has obtained great accomplishment in attracting and using foreign capitals; especially the inflow quantity of FDI (Foreign Direct Investment) is one of the biggest amounts in the world. Foreign capital has already been one of the most important components in our national economy. Without the foreign capital, China could not develop so quickly. But in recent years, there is an overflowing phenomenon between foreign capital and domestic capital because of expanding the scale of foreign capital and rising of saving. From the aspect of providing macro capital, the classic theory of "Double Gap" could not satisfactorily explain the fact that our country imports many foreign capitals. So we should analyze the importance of using foreign capital from our country-self situation. Meanwhile, utilizing foreign capital takes negative effects on our economy and makes economic risks also; because the characteristic of international capital is try to gain the most profit. Therefore, in order to import more foreign capital and use more favorable factors to reduce the negative complications and potential risks, The purpose of this dissertation is about how to adjust the strategies when we use the foreign capitals so that we can assure that our country's economy will keep continuous development in the tide of Worldwide Economy Uniformity. This dissertation has four sections.Section OneThe history of utilizing foreign capital and its characteristics. First, it clarifies the meaning and types of using. Second, it retrospects the history of utilizing foreign capital and analyzes different phases of development of our country as well as the characteristics of foreign capital input.Section TwoCombing the recent condition of our country, it analyzes the applicability of "double gap" theory, discusses the importance of importing foreign capital and the positive and negative effects of utilizing foreign capital.Section ThreeThe problems and risks of utilizing foreign capitalThe main problems include frame problems; the "extrusion effect" of foreign capital to domestic capital; the unfairly treated problems between foreign capital and domestic capital; the problem of national asset's run out and technique overflow problem. The risks are macro-control risks; finance-supervise risks and capital market open risks.Section FourThe strategies of importing foreign capital in the futureThese include adjusting the goal of importing foreign capital; enhancing the construct of flexible environment under the interaction of foreign capital and domestic capital; importing more foreign capital; investing more to the west of China; reasonably changing the industrial-structure of foreign investment; gradually canceling the foreign capital "beyond country treatment"; endowing the fair competition between foreign capital and domestic capital; reforming the economic system; preventing the national capital running out; setting up a system to forecast the risks.