The Effects Of FDI On China's Foreign Trade: An Empirical Study

FDI and International Trade have close relationship with each other. In research methodology the theoretic analysis and empirical study are both used, first to sum up the theory about relationship between FDI and International Trade, then to examine the relationship between FDI and Chinese International Trade with the method of empirical analysis with elaborate data. Firstly, it has the growth effect to the total amount of foreign trade; Secondly, it optimizes the structure of foreign trade commodities of China; Thirdly, it changes Chinese main trade way--the processing trade is becoming main trade way; Fourthly, it impacts the China's foreign trade district structure; Fifthly, the article analyzes the effect of FDI on the competitiveness of China's export products, the conclusion is that FDI has negative effect on competitiveness of primary products, however, it can improve our competitiveness of finshed products. The article also analyzes the relationship between FDI and export competitiveness of labor-intensive products, capital-intensive products and technology-intensive products in order to have in-depth comprehension on how FDI influences export competitiveness of finished products, it's found that FDI can both improve the competitiveness of labor-intensive products and the competitiveness of capital-intensive products, technology-intensive products. Furthermore, the effects of FDI on capital-intensive products and technology-intensive products are more prominent. On the basis of previously empirical analysis, finally the article provides related suggestions and development strategies in order to boost up the positive influence of FDI on foreign trade.