Dramatic Increase Of Indian FDI In China From The 1990s

China and India are both world-famous ,civilized countries and they have effulgent culture. In history, the two countries companied friendly and had frequent communion in aspects as culture,art,idea. In modern history, the people of the two countries still sustained and sympathized each other to combat the rule of colonialism and strived for the national liberation.After the independency of India and China ,the countries' relations develop continuedly. The 5 peace principles proposed by the two countries had become new contributions for international communities.With the end of Cold War, old situation had collapsed and the world situation had developed towards peace and development. Every country begins to develop economy and to improve own strength. They participate in global economy actively, divide the international work, collocate resource effectively, share in new fruits from the development of science and technology.The quickening of globalization have enabled both China and India step into full-fledged cooperation between them on economic and trade .From the 1990s ,the two countries begin to practice the reform of national economy. In the course, the two countries improve environment for attract more investment and they leam advanced technology, knowledge and the experience of manage. They still take active action to encourage domestic enterprise to participate in cooperation and competition of the international economy. Certainly, the two countries' cooperation of economy and trade grow rapidly and specialy direct investments from India in China assume a rapid and sustainable increase. This paper is a preliminary examination and assessment of the present development, contributing inputs, and a predictable prospect of this positive development.First part of dissertation mainly stated dramatic increase of Indian FDI in China. In this part,FDI theory, its actuality and its traits are both analysed particularly.Second part of dissertation stated the reasons of the dramatic increase. This part is a difficulty of the paper. In internal and exterior view, Indian enterprise' progress, the preferable environment of investment in China and profits are both causes.Third part of dissertation stated the foreground and obstacle of Indian FDI in China. In a contrary way , Indian FDI in China has an expansive foreground but there are many disadvantages.In the end, dissertation stated the influence of Indian FDI in China on Chinese enterprise and government. For example, as Chinese government, it should take active actions to speed Chinese enterprise' development.