Affects Of FDI To Chinese Economy

Since World War II, with the impetus of the modern science and technology revolution, the world economics has been growing fast, the tendency to economical globalization has been more and more obvious. At an unprecedented speed and on an unprecedented scale, the rapid development of foreign direct investment (FDI) has a widespread and profound influence on the development of world economics.FDI plays appositive role in these fields, such as in the capital formation of the host country, in the technology advancement, in the evolution of the industrial structure, in the development of the foreign trade, in the international balanced income and expenses with aspect, in the promotion of employment and so on. From different angles and levels, these theories elaborate the motive and the determining factors of the foreign direct investment: the theory of monopoly superiority, the theory of internationalization, the theory of international compromised production, the theory of the product cycle of the international direct investment, the industrial shift theory and so on.Since the reform and opening-up, in the field of our using of FDI, the scale ha been expanded unceasingly, the structure has been optimized. The main reason of the rapid development of FDI in China is the natural resources, the labor resources, the economical fast growth, the readjustment of the economic structure and the marketability reform. The positive roles of FDI are in such aspects: increasing the capital storage quantity and quality, enhancing delivering level, impelling the technological advancement, enhancing the essential factor productivity; promoting the industrial structure adjustment, optimizing the structure of the import-export goods, enhancing the international competitive power of the export product, increasing the domestic employment and the financial revenue, improving the international payment balance, impelling the marketability reform and so on.In the practice of using FDI, there also exist some problems: unreasonablestructure, some problems in the activity and the management.FDI has its own profit maximization target, while our government's target is to promote economy to develop. There are deviations even contradictories between the two. As the exterior re sources, FDI brings the negative influences while promotes our industrialization advancement. To some extant, it has intensified the region economy non- balanced development, expanded the industrial structure deviation, weakened our own enterprise technological independent development ability and suppressed our own property growth. Some elimination and pollution industries have had the disadvantageous influence to our country environmental protection. FDI from the multinational corporation will decreased the ability of the government to implement the macroeconomic policy.Along with the development, there are huge FDI demands in the development phase, it is necessary to persist omni-direction, wide-domain, multi-level policy of opening to the outside word, adjust and formulate new stagy in order to expand the scale, optimize the structure. It will benefit for the readjustment of the economic structure.It is necessary to optimize the industrial structure and expand the domain, realize the balanced development among the sectors, implement the multiplication strategy, improves the foreign investment environment vigorously.