Japan's Direct Investment In China And The Influence On China's Industry Structure

Since the reform and open policy initiated, Chinese industrial structure has been continuously improved and upgraded; the ratio of total industries has become more and more reasonable; the pillar industries show a visible tendency towards high capital intensity and high value-added development; In the past 20 years, Chinese industrial structure has experienced a great improvement. The reasons mainly lie on the economic system reform, and the utilization of foreign direct investment in China. Among all these important factors, Japan's direct investment has played an important role of engine directly and indirectly. It has not only directly promoted the upgrading of industrial structure, but also indirectly affected the overall economy of industrial structure. Japan's direct investment has greatly bridged the gap of needs for constructing capitals. Moreover, the diversity of Japan's direct investment has greatly promoted the native industrial development to a high level, shifting to capital and technology intensive industries.About FDI influences on Chinese industrial structure, many scholars have made deep researches from different angles and have achieved a lot. My research interest is to specialize in the transmission mechanism of Japan's direct investment promoting Chinese industrial structure by empirical analysis.The Japanese government stresses the economic interdependence between China and Japan and emphasizes the role the FDI plays in the interdependence. The FDI of Japan can provide China not only capital and technology but also all kinds of things that the FDI of other countries can't. The FDI of Japan in China has been a tide that any man-made power can't prevent, which is advantageous to both China and Japan, the change of which is deeply influencing not only the economic relationship between China and Japan but also the one among the East Asia.This paper is organized as follows:Part 1 summarizes the related theories in FDI and industrial structure upgrading.Part 2 examines the changes of the gross of the FDI of Japan in China. For showing the real situation and long-term trend, used are three indexes: the change of sum of the FDI of Japan in China, the one of China's proportion in the FDI of Japan to the world, and the one of Japan's proportion in the FDI of China from the world.Part 3 examines the change of the structure of the FDI of Japan in China, which similarly has three aspects: the change of industry, the one of technology content structure and the changes of region structure.Part 4 demonstrates the effects of FDI on Chinese industrial structure from three angles, focusing on the contribution to three industries, the shifting of pillar industries, identifying the details of the transmission mechanism.Part 5 puts the suggestion to Chinese government for better using the FDI of Japan's to promote Chinese industrial structure.