The Effect Of China's Open Regional Policy On The Change Of FDI Center

Foreign Direct Investment has made a generous contribution to the development of China National Economy since the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, but there is great regional difference of FDI which is caused by the difference in historical background, geographical environment, resource allocation, production methods etc. The impulses of profit maximum of foreign capital strike foreign investors to invest in east of China, so we need the state's macroeconomic regulation and control. Through formulating and implementing regional slanting policy, the location advantage of middle and western regions and backward areas will be enhanced,and then more capital will flow to these areas. Therefore, it is practical significance to study on the influence of regional policy to FDI location since China's reform and opening-up.Firstly, this paper reviews the Foreign Direct Investment theory and analyzes literature to find the starting point to research. The function of government hasn't been stressed in the Monopolistic Advantage Theory, Product Life Cycle Theory and the Internalization Theory. Since Eclectic Theory of International Production has been put forward, there are lots of empirical studies on the impact of policies on FDI. Literature Research shows that foreign scholars major focus on policies of host country which will affect the FDI. While Chinese scholars'major study objects are incentive policy and regulation policy. They haven't analyzed the effect of regional economic policy on FDI location from perspective of regional economy.Chapter 3 and chapter 4 will take China's regional strategies since reform and opening-up as main line to study the development of Chinese regional economic policy. And then on this basis track the effect of regional economic policy on the change of FDI location with trajectory of nationwide and Four Economical Plates.With the evolution of regional economic policies, the country's FDI center moves from eastern cities to middle region. Although there is high degree of similarity between eastern region and nationwide, with the expansion of opening up the importance of eastern region has gradually weakened. With the help of regional slanting policy the FDI has increased in middle region, western region and northeast region of China.