FDI And China's Industry Security

Essentially, the author deems that foreign capital is a double-edged sword. After the entry of WTO, with the further opening of China. These funds play an important role in the construction of national economy but they have also damaged domestic industry security. Up to now, however, the theory of State Industry Security has not been well founded, and the domestic research on this issue is just striding the first step. This dissertation aims to explore how to utilize foreign investment and maintain industry security as developed countries do for the purpose of meeting the challenge from economy globalization and international multilateral business cooperation.Firstly, Analyzing foreign investmet's influence on industries security from industry control,industry structure,industry efficiency.thirdly, makes an empirical analysis based on the above four kinds of industry security. The result shows that foreign investment has negative influences on industry security, such as controlling some domestic industries, enlarging the structure windage, contributing little to optimize the structure, the technology-dependence effect, etc.Then analyse the current situation of utilizing foreign investment in China and makes an empirical analysis based on the above four kinds of industry security. The result shows that foreign investment has negative influences on industry security, such as contributing little to optimize the structure, the technology-dependence effect, etc.Finally, this paper raises some advises,such as noticing foreign either or positive influence.The best way to ensure the industry security and the long-term development of Chinese economy is to administrate foreign investment as a whole by means of strengthening vigilance and adjusting inappropriate strategies.