Foreign Direct Investment In The Safety Of China's Port Industry

In the environment of global economy, China port industry is faced with both great opportunities and tremendous challenges for its growth. Following the China's entry of WTO and the enacting of opening policies for port industry is the flood of foreign investment into the industry. In the meantime, the local port industry has not established its competitive strengths over foreign investment. Given that port industry is of strategic importance to the country's economy security, the security of port industry has become the focus of the attention of government and experts in the industry.To investigate the security of port industry, this paper established the security evaluation system for port industry by tailoring the theories of the impact of foreign direct investment on the security of local industries to fit port industry; and with the system, studied the security status of China port industry.The study combined qualitative with quantitative analysis. Security model for port industry was established with reference to the multi-index system that International Institute for Management Development (IMD) and World Economic Forum (WEF) use to evaluate the competitiveness of different countries.The paper consists of five parts: 1)The summary of the background, objectives, methodology, and study scope of the paper; 2)The review of theories on industrial security; 3)The study of the entry of FDI to China port industry, and its impact on the industry; 4)The establishment of security evaluation system for port industry, and the estimation of security status of the industry; 5)The analysis of the threats that China port industry is faced with, and the measures to cope with the threats and upgrade the security status.The core part of this paper is about the establishment of security evaluation system for port industry. After careful study and calculation of the index of the system, the paper finds that the value of security status for port industry falls in the range of "roughly secure". However, the control force of foreign investment on the industry, one of the four first level indexes in this study, is "non-secure". Thus the paper concludes that the port industry is currently roughly secure, but the issue of the control of foreign investment on the industry cannot be neglected.