The Influence Of FDI On The Electronic And Telecommunications Equipment Industry

After the entry into WTO, the competition between countries has become sharply and countries have sped up to invest in China. FDI is playing an important role in our countrie's economic development. As one of the leading industries, the Electronic and Telecommunications Equipment ndustry has absorbed a great deal of investment and become one of the industries that have strong industry competitiveness. This paper aims to analyze the detailed influences of FDI, which helps to make the relevant policies.Firstly, this paper reviews the relevant theories and researches on international competitiveness and FDI. Then, it uses the data of FDI and PR to set up a model. On the base of Michael Porter's "diamond"theory, this paper tries to analyze the factors that affect the industry competitiveness and the positive and negative influence of FDI on the Electronic and Telecommunications Equipment Industry. And based on the study of the current situation of the Electronic and Telecommunications Equipment Industry, this paper analyzes the factors that decrease the positive influence of FDI. This paper also brings forward some suggestions about how to improve the international competitveness of the Electronic and Telecommunications Equipment Industry by taking use of FDI.Generally speaking, FDI has a positive effect on the international competitveness of the Electronic and Telecommunications Equipment Industry. But the effect differs when it comes to the detailed factors. On one hand, FDI has a positive influence on capital, technique, labour, demand, supporting industry and government. On the other hand, to some extent, there is monopoly in core techniques because of FDI, which affects the safety and innovation of the industry.According to this situation, the central government should promote the innovation, prevent the monopoly, constitute relevant laws and maintain a fair market. Meanwhile, the local governments should increase their efficiency and transparency, improve the functions of the relevant departments and maintain the continuance of the supporting policies. In addition, more industrial organizations should be set up in order to make efforts on promoting cooperations and facing anti-dumping issues. The corporates should increase their investment on techniques and brand buildings.