Research On Location Choice Of US Investment In China

US is the largest capital-export country in the world,and the third biggest foreign direct investment source country to China.By the end of 2006,USFDI(US Foreign Direct Investment) projects in China had amounted to 52211,with actual investment of USD53.96 billion,,accounting for 8.2%of China' s total.According to accumulative actual foreign investment,USFDI ranked in the third place,just next to HongKong and Japan.Because of China' s uneven open policy and other location factors,USFDI in China appears obviously regional differences.USFDI mainly distributed along east coastal area,especially concentrated in three areas including "Round Bohai Sea Economic Circle" area centering on "Jing-Jin-Tang", Yangtze River Delta area centering on Shanghai City,and Zhujiang River Delta area centering on Dongguan City.This article first reviewed the development trend of FDI location-choice theory, and then analysed development status,regional distribution and industrial structure of USFDI.The analysis combined qualitative and quantitative methods to explain the reason why USFDI in China is distributed lopsidedly.According to Dunning' s eclectic theory of international production,the qualitative part respectively analysed the influential factors in location choice including market,trade,cost,policy,agglomeration and natural factor etc.The influential factors could be concluded as following:1.China' s great market potential and fast-growing economy is the driving force attracting USFDI,2. China' s open economy has closely related effect,3.Industry agglomeration becomes the key factor,4.Labor cost still have a certain sense of influence,and efficiency wage is taken into consideration instead of low payment.In quantitative part,the article applied econometric model to analyse the data collecting from 2005 China Statistics.Thecurve fitting analysis indicated that the main factors influencing USFDI included market scale,open economy,industry agglomeration and fundamental facilities.Cost and policy got relatively weak influence,comparing with the enforcing effects such as facilities and agglomeration.As Dunning said,the influenee to location choice of FDI had come to one comprehensive factor.In the end,some suggestions were given for USFDI promotion, combining with new development trend of US overseas investment in economic globalization era.