Research On The Relationship Between FDI And National Finance Security

FDI has been the essential factor of economic for China since the Reforming & Opening. Especially it is a powerful push force of China economic in recent decade. However we can't neglect the negative influence that the FDI brings. In this paper we carry on the overall analysis to the FDI from the aspect of international payment. By the analysis to each account, we find the weight of FDI in all international capital has dramatically decreased in the last few years, the out-forward of capital flying has become into in-forward of hot money. In the model of international payment, by adding the vary of Out-forward FDI, we prove that the favorable balance of payment can't sustain just by In-forward FDI. The favorable balance of payment shall be sustainable by improving the profit margin of capital. In the end, we give some advice and solutions about FDI for our government.