Negative Impact Of Fdi On China's Economy

The main topic of the thesis is the blight of the FDI in the host country. We focus on three aspects of the negative effects of FDI. The first is the over-surplus of international trading caused by FDI. The second is that FDI crowed out the local investment. The last is that the overflow effect of technology, is not sufficient to boost the technology. improvement of Host country. The thesis tries to find the good way to make FDI combined with China Economy based on the demonstration analysis. The China economy is still influenced by the global financial crisis. We must reduce the negative effect of FDI to assure the retainable development of China. The current FDI of China has some structure problem. More than 50% FDI belongs to the manufacturing sector. Its high energy consumption and pollution increased the public cost of China. When we evaluate the performance of FDI, we must consider about these social costs.The econometric methods had been used in the analysis of the reason of the surplus of China international trading. It includes Johansen's co-integration test and Granger Test etc. We try to find if the FDI caused the trading surplus remarkably.And we also research the crowd-out effect and the technology-overflow effect of FDI. And we found FDI also have the negative effects in the both aspects.At last, I summary the negative effect of FDI. And I try to find the suggestion for the policy makers to reduce the negative effect and guide the FDI to accelerate the economy development of China.