Study On FDI Policies Under WTO Rules

Joining the WTO(the World Trade Organization) is an important and historical step for China , which leads China to the economical globalization. A new stage for the development of the introduction of FDI(Foreign Direct Investment) has begun since then .There are a series of rules for FDI, included in TRIMs (Agreement on Trade-related Investment Measures), GATS(General Agreement on Trade Services), TRIPs(Agreement on Trade-related Intellectual Properties) and ASCMs (Agreement on Subsidies and Countervailing Measures). According to them, the investment measures under the policies and laws issued by the host country to limit FDI directly and indirectly are restricted, and the Most-favored-nation Treatment and the National Treatment are strengthened. The least protection for intellectual properties should be practiced. The principles of openness of the policies and participation of the developing countries should also be insisted on. Under the condition that FDI has developed rapidly many other countries have been adjusting their FDI policies to be more unrestrained. China has achieved a great much in importing FDI since it carried out the reforming and opening policies in the last century, whose total amount of FDI in recent years ranked the top countries. The country is implementing the neutral-nearing, encouraging and restricting FDI policies, a great help to its introduction of foreign investors. In order to attract FDI actively and effectively, the country is trying to adjust its economy structure, improve the economy quality and get a balanced development in its territory and industries. With the rapid development of economical globalization, some countries which have nearly the same economy structure as China issue preferential policies and improve the investment environment. Many problems arise on such a base, such as the super National Treatment given to the FDI enterprises, lack of consensus of FDI laws and policies , less innovation to the utility of FDI and etc.. In the light of the author, the following measures need to be taken: firstly, cancel the super National Treatment to the FDI enterprises; secondly, issue unified national FDI laws and policies; thirdly, take such new forms as transnational purchasing to remold the state-owned enterprises and to manage the problem assets; fourthly, implement the preferential policies based on industrial development and technological innovation; fifthly, promote the middle and western areas to extend FDI utility; sixthly, support the middle-sized and small-sized firms to attract FDI cooperation; seventhly, improve the investment environment; eighthly, perfect laws and policies on FDI; ninthly, strengthen the supervision and management over FDI to establish the system for industrial protection and economy security.