Study Of The U.S. Direct Investment In China From The 1980s In The 20th Century

Since reforming and opening up of China, China has developed a series of policies to attract foreign investment. More and more foreign enterprises bring in investment in China and the scale of investment is steadily expanding. The influx of foreign capital inevitably impact on the development of our politics, economics and society, and thus more and more attention has been paid on these issues. Today, the United States is the world's largest economy and the largest capital exporter, hence it plays the most important role in foreign direct investment in China among all countries. Therefore, study of the motivation, characteristics and factors of U.S. direct investment in China and its influences on modernization of China has become a key issue and has a special significance. This thesis combines theoretical and practical analysis mainly based on US direct investment in China, which focuses on the influences of U.S. direct investment on the development of China from the last eighties and proposes some corresponding strategies and recommendations.Firstly, the thesis reviewed the history of the theories of foreign direct investment and affirmed the contributions and significance of the theories of foreign direct investment. We also pointed out the shortcomings (limitations) of these theories and made some comments accordingly.Secondly, based on the study of foreign direct investment theories, the process of the U.S. direct investment in China was analyzed by stages taking the last eighties as starting point here. Through an overview of the basic profiles, industries, regional distribution, and characteristics of development and change of the U.S. direct investment in China, we analyzed and illustrated that the U.S. direct investment in China is limited to many factors from the qualitative point of view. In this thesis, we analyzed Sino-US relations, Sino-US trade, economic policies, industrial restructuring, exchange rates and interest rates, and cost one by one and studies showed that the driving forces behind the U.S. investment in China are ascribed to China's huge potential market demand and growing economic strength. Comprehensive advantages of location are considered in the location choice and the scale of the U.S. investment in China is tightly dependent on the openness of China market. In view of economic cooperation between the two countries depending on the normalization Sino-US relations and the particularity and significance of the U.S. direct investment in China, we should properly handle the Sino-US relations during the process of foreign capital intake, and actively respond to changes of China's political and economic development in the U.S. direct investment in China.Finally, the U.S. direct investment in China is more complicated than that in other countries, which is attributed to the differences between the U.S. and China in social system, economic system, ideology, values, national interests and so on. This thesis generally analyzed the complex international environment of China and a series of strategies possibly adopted by our government to dispose the issues derived from the U.S. direct investment in China are discussed here.Previous literatures mainly focused on the research of foreign direct investment, which did not finely categorize the foreign investments into different countries or regions. In this thesis, we studied the history, characteristics, motivation and regional distribution of U.S. direct investment in China. The factors influenced the U.S. direct investment in China and their impacts on China were discussed and the corresponding strategies were proposed. Due to the recession of in U.S. economy, the appreciation of exchange rate of Sino-US currency becomes a hot topic once again.Based on the analysis, the impacts of export and import price, interest rate and so on were discussed. Furthermore, we also expatiated on the influence of the exchange rate changes of Sino-US currency on the U.S. direct investment in China in the near future.