FDI And The Development Of China Electronics And Information Industry

Firstly, this thesis introduces the definition, characteristics and currentdevelopment in China of electronics and information industry. Then, it talks about thereasons why China electronics and information industry can attract so much foreigndirect investment from three respects: comparative advantage,ownership—internalization—localization theory (OLI theory), and the incentives ofFDI. Based on the above discussion, it continues to analyze the influences of FDI onChina electronics and information industry. To a considerable extent, FDI is the majorcapital provider for the development of China electronics and information industry,beside which it also push the enlargement of industrial scale and the formation ofindustrial cluster. This thesis has emphasized the influences of FDI on thetechnological advancement and technological innovation ability of the industry. Itturns out that FDI has really promoted the technological advancement of Chinaelectronics and information industry to a certain extent, while has no notable influenceon its innovation and R&D ability. The technological dependency on external sourcesof China electronics and information industry has not been transformed substantially.