Research On Domestic Financial Policy System Related Foreign Direct Investment Of China

Under the new situation of economic globalization and China's entry into WTO,for further developing Chinese economy and improving its comprehensive nationalpowers and its international competitiveness by utilizing well both domestic andforeign markets and resources, it is a strategic task for China to develop foreign directinvestment (FDI). Since the 1990's, Chinese foreign direct investment hasexperienced great development. However, it is found that the foreign directinvestment is one kind of international economic activity filled with high risk andChinese enterprises are still in the early stage of foreign direct investment. Under suchcircumstance, the government is supposed to build up a more successful foreigneconomic policy system to enhance the development of FDI. The author believes thatamong numerous economic policies for supporting foreign direct investment,financial policy is the most important economic policy under the regulation of WTO.This essay tries to start from a brief review of the development process and statusquo of foreign direct investment of China and make analysis on financial policyfactors which make a difference on foreign direct investment from the angle ofsumming up international and domestic relevant literature. Then, on the basis oftheoretical and empirical analysis, this essay does a comprehensive elaboration onnecessity and influence of three financial policies to promote foreign directinvestment, from the angle of restraint adjustment of foreign exchange, financialdeepening and policy finance respectively. In accordance of analysis above, at the endof the essay, it puts forward some concrete suggestions for improving our country's financial policy system related FDI.