The Influence Of Japanese Direct Investment In China To Our Country's Trade

It is an important content of the opening-up policy to absorb foreign direct investment. It has been proved that the foreign direct investment has its important influence on Chinese economy. Japan is our biggest trading partner and it is our biggest investment country except Hong Kong Area. So it is important to study the influence on Japanese direct investment in China and the trade of China.This paper analyzes the history of the direct investment from Japan to China, and the author summarizes its character, which includes the gross amount of Japanese direct investment in china, its distribution of area and industries. The author also explains the main reasons to get these characters. The author analyzes that the investment is main in the foreland and is main in big city. The author builds up diverse line back to back model, makes use of Eviews software,uses the data from 1986 to 2005 and carries on a substantial evidence examination on Japanese direct investment in China and the trade of China. It's proved that Japanese direct investment in China, import and export exist positive correlation. In other words, Japanese direct investment in China stimulation export and import. It has important influence on Chinese economy and society. At last, the author analyzes that it is not balanced in professional region development, the level of technique transforming should be made higher, and investment environment is not perfect. In order to solve the above problems, the paper puts forward some advices about how to make use of foreign capital, for example, understanding the guidance of foreign direct investment and making good use of foreign capital; strengthen the technique transforming, improving the investment environment, especially the Middle and the western, and drawing on foreign capital transferring to the inland region.