Study On The Influence Of Japanese Direct Investment In China On Sino-Japanese Trade

International direct investment and international trade is two major forms of the international division of labor. Attracting foreign direct investment is an important content of China's opening to the outside world, more than 30 years of practice has proved that foreign direct investment has an important influence on China's economy. As China's most important source of foreign investment and one of the trade partners, Japanese direct investment in China and the rapid development of bilateral trade, have become an important feature of the economic relations between China and Japan. In the process of economic globalization,it has also become an important factor in Chinese economic development. As a result, study on the intrinsic link between the two, will no doubt help the Chinese government to develop reasonable policies to promote deeper development between the two countries, to strengthen bilateral trade relations and promoting China's economic growth.Under the lenvironment of economy globalization,China engaged in the overseas direct investment constantly, at the same time, foreign direct investment in China plays an increasingly important share of China's economic development and is playing an increasingly important role in Chinese economy development,and promote the foreign trade of China and other countries. With China's rapid growth to attract foreign investment and expanding foreign trade, attract foreign direct investment to strengthen the relationship between foreign trade is especially important.International direct investment theory and international trade theory suggest that the relationship between direct investment and trade is alternative or complementary. The relations between foreign direct investment and foreign trade the theory involves from a single alternative in the very beginning to a single complementary relationship, and develop to alternative and complementary co-existence. In this paper, through the studies on the relations between Chinese foreign direct investment and trade, we find out that direct investment has a positive relationship on trade, direct investment will promote the growth of import and export trade. Selected Japan as the study objective is because Japan is China's largest trading partner, is China's largest invest country besides Hong Kong, China and Japan have maintained close economic ties all the time, so study on Japanese invest in China and the influence on trade between the two countries has important practical significance. Study on Japan's direct investment and trade linkages between the two countries will no doubt contribute to the development of the Chinese government on Japan's direct investment and trade policy towards Japan.Based on the results of theoretical research,this paper makes further analysis on Japan's direct investment and trade relations between China and Japan. The full text adopts theoretical research and data analysis methods, regression analysis and significance test for the relations between Japan's direct investment in China and the Sino-Japanese trade , concluded that the direct investment and import and export trade volume is positively correlated.,it has to promote the growth of investment and trade between China and Japan to promote economic development. In this paper,we discussed the Japan's direct investment from the following aspects: the amount of development, industry characteristics, regional selection , and comprehensively descript Japan's direct investment in the development process,and analyze the main reasons for its development and changes. On the Sino-Japanese trade from the trade volume, trade structure of import and export merchandise describes the current situation of Sino-Japanese trade, and then used the 1990-2007 investment and trade data, to establish a linear regression model, using SPSS software, research on the impact of Japan's direct investment on China's import and export trade , confirmed that Japan's direct investment has a positive correlation on China's export trade and import trade ,and Japan's direct investment in China has a positive trade promotion role on China's exports and imports, and also found that FDI has greater promoter action on import than export. Finally, make forward some useful suggestions upon the investment industry and regional development imbalances, capital of the technical content is not high and the investment environment leaves much to be desired,these suggestions include correct understanding of proposed foreign investment, and guide the use of foreign capital structure; to improve the technical content of capital; to improve the investment environment, especially in the West of China, attract foreign investment to the inland areas, such as the transfer of appropriate countermeasures. In this regard, we should actively promote domestic demand, continue to expand the domestic market; ever-increasing investment in education, talent and technology to expand reserves; actively encourage local enterprises to invest in R & D, enhance independent innovation capability; improve China's investment environment, strengthen intellectual property protection in China, to improve the scientific and technological content of Japanese investment in China, and accelerating China's economic development.