The Research Of FDI's Influence On The Trade Of China

Since the Reform and opening-up, both China's FDI and foreign trade have made great achievement. Although FDI has made a lot of contribution to China's import and export trade, it brought many troubles at the same time. In the new century, how to absorb and use more and better FDI according to the requirements of the development of the world economy and China's own national conditions in order to promote the growing scale and continuous optimization of China's import and export trade is very important for promoting China's sustained and healthy economic development.In this paper, some detailed foreign trade and FDI Relevant data are collected, and on this basis, by using the data from 20th century 90's to 2007, this paper conducted a more thorough study about the relevance between the large-scale FDI growth and some phenomena, like the rapid growth and continuous optimization of China's import and export trade.Firstly, this paper used research methods of Combination of theoretical analysis, empirical analysis and index analysis and tested the relevance between the growth of FDI and the growth of total scale of China's trade, and thus got the conclusions of a positive correlation between them.Secondly, by using charts and regression models and other methods, this paper demonstrated that FDI had a promoting effect to optimize the trade structure of China's import and export from the commodity structure of China's foreign trade, the way of foreign trade as well as the geographical structure of foreign trade, etc.Finally, through the above analysis, Summed up in the problems and lack of the use of China's FDI to promote China's trade, and raised a number of policy recommendations address these issues.