Research On Foreign Direct Investment And China's Industrial Security Policy

Introduction of foreign capital into a country's industrial development, especially in developing countries, has great role in promoting the reform and opening up of China having introduced foreign investment for 30 years, China has attracted foreign direct investment of more than 8,000 million dol-lars and has been the country attracting the most foreign capital in developing countries for 17 years. Currently, foreign capital has entered the acquisition phase. The most immediate consequence of mo-nopolies brought out by mergers and acquisitions would bring risks to China's industries.This article is divided into six parts. The first part is about the main theories of industrial safety at home and abroad. Secondly, the thesis briefly reviews foreign direct investments' practice in China. After that, the impact of foreign direct investment on China's industrial security has been analyzed in detail from different angles of t the macro-economic security, industrial control, industrial technology and industrial structure. In general, FDI in China has a positive role in promoting the economy, but in some areas it already has a negative impact which cannot be ignored. Therefore, how to deal with for-eign investment and how to adjust our industrial security policy have become an urgent problem to be solved. To better answer this question, the fourth and fifth part study a few representative countries as representatives of developed and developing countries to find out the experiences and lessons of these countries during the process of the implementation of industrial policy. Finally, the dissertation puts forward countermeasures on strengthening China's industrial safety.This paper argues that the trend of economic globalization is irreversible and thus China cannot refuse simply foreign direct investment. However, to avoid the damage to industries, security policies in the investment industry played a particularly important role. In conclusion, it is essential to design industrial safety policy in the interest of China's industrial development on the basis of the advanced experience the lessons of other countries and on China's realities.