An Analysis On The Influence Of FDI Exert On China Foreign Trade And The Countermeasure

With the rapid development of globalization, the relationship between trade and investment is interconnected than ever before and Foreign Capital has become the major factor that influences the whole country's trade growth. But concretely speaking, what on earth is the exact relationship between the international commodity trade and FDI in one country under the condition of economic globalization? What's the relationship between China's FDI enticement and China's foreign trade? Theoretically and empirically, this dissertation summarizes and analyzes the questions mentioned above. They are practically significant to issues including further opening-up, FDI enticement, and proper Foreign Capital policy formulation and are also the main content of this research paper.At first the paper introduce the development of FDI in china, then explain its importance to the economics of china. Then the paper makes a systematic and deep-going study of the economic phenomenon of obvious structural improvement based on the large-scale growth of FDI general volume flowing into China and the rapid increase of total volume of foreign trade since the reform and opening to the outside world. In research methodology the theoretic analysis and case-study are both used, first to expound the theoretic mechanism of foreign trade mutual moving development; then to examine the correlation of FDI growth and the increase of foreign trade general volume with full-detailed data and econometrics and to prove the effective promotion of FDI to the improvement of foreign trade of the FDI enterprises and home-owned enterprises. At last the paper list the existing problems in present FDI enterprises in promoting China's foreign trade development and to provide a number of practical countermeasures of how to bring FDI functions into full play after China's entry of WTO.