Growth Mode Transition Situation, China's Use Of Foreign Direct Investment

In 1980s, Chinese government actively encouraged abroad enterprises to directly investment in China , in order to acquire advanced technology . At that time , there are few foreign companies in China . Because foreign capital is necessary for economic development , we don't care whether foreign direct investment (FDI) can bring advanced technology to us . But now , because we have plenteous capital and FDI take market from local company , we suspend whether it is necessary to use FDI successively . This article is aimed to answer this question.The article is divided into four sections . Chapter 1 provide a general review of the research that scholars made about the effect of FDI on amphitryon . It is mainly about three aspects : the effect on economic increase ; the effect on industry development ; the effect on international trade . Chapter 2 summary the status of our country in using FDI . It make a conclusion that FDI make positive effect as well as negative on our economy . In general, positive effect is primary . Finally, policy advices on how we take advantage of FDI are proposed in section 4. Four specific suggestions are given complied to certain considerations.