A Study On China's Inward FDI Performance And Potential

Since the 1990's, the volume of FDI (Foreign Direct Investment) flowing into China increases rapidly. Especially in the first five years of the 21" century, the amount of FDI flows into China rises at more rapid rate. The stock and flow of FDI in China all increase quickly. FDI inflow of China per year even exceeds that of America in 2002 And 2003, which make China absorbed the most FDI in the world. FDI do much good to China's economic development. Considering the important role that FDI plays on one country and FDI performance and potential play on inward FDI, this article makes a study on the performance and potential of China's inward FDI. In the process of study, the author compares China with India in the aspect of FDI performance and potential and gets a conclusion on the real status of China's FDI performance and potential and the distance between China and India.There will be four chapters in this article:Chapter One sets forth the related theories of domestic and abroad studies includingthe international direct investments theories and theories about international directinvestments performance and potential, all of these will provide theoretical support toanalysis.Chapter Two focuses on the study on the FDI absorption achievement of China. On the basis of general description about China absorbing foreign direct investment, the author uses achievement index to analyze China's current situation in this aspect, and compares the results with India's. Finding the problems of China absorbing FDI as well as the drawbacks of applying performance index to measure the attracting FDI performance of one country, the author establishes the appropriate index system to appraise China's practical performance of absorbing FDI.Chapter Three analyses China's potential to attract FDI. Bases on the influencing factors of attracting FDI for one country, through citing UNCTAD potential index and establishing the FDI relative potential assessing index as well as the absolute potential assessing value, this article analyzes the absorbing FDI problem in China from the aspect of both host country and investing country. Finally, it gets the amount of China's FDI and its distribution.Chapter Four generalizes the whole paper and puts forward some suggestions on China's inward FDI.