China To Foreign Direct Investment In The Country's Strategic Path

Since the reform and opening policy, our country's opening strategy to the outside world has paid more attention to introduction. By absorpting foreign merchants'investment and introducing the overseas fund , the advanced technology and the managerial experience positively, our country has developed rapidly into a great international trade nation and great introducing foreign capital nation which has stood proudly in the forest of world economics. At the same time, however, our country's foreign direct investment has been not paid enough attention, so the domestic enterprise goes abroad for transnational management extremely slowly and late. During so long a time, as the biggest developing country in the world, the scale and the development speed of our country's FDI has been extremely disproportional to our country's rate of economic development. In addition, the foreign investment competitive power falls behind our country's whole economic and technical strength out and away. This shows that our country's bidirectional opening to the outside world is very uncoordinated. Both The Third Plenary Session of the 16th National Congress of CPC and The Fourth Session of the 9th NPC put forward that we should implement the FDI Strategy. This signaled that the FDI strategy was finally established as our basic national policy. Afterwards, our strategic concept of country's FDI has been enriched and perfected day by day. In the report of the 16th NCP and the decision made in the Third Plenary Session of the 16th National Congress of CPC about many Major issues in Socialist Market Economic Structure, the FDI strategy was further strengthened and developed. Developing the large-scale FDI will bring in great promotional effects to our country's economy, which will be shown in five aspects such as the economic development, the industrial structure, the technical advancement, the exportation and the employment.After passing the post transition-period of entering WTO, the Chinese economic position in the world economic pattern obviously improves. China's GDP and trade level have both achieved new historical level. In 2005, China's GDP ranked fourth, and the foreign trade ranked third in the world steadily. China's status as great producing nation and great trade nation has been established and conformed. At present, the developed countries' economy is trinity of great producing nation, great trade nation and great FDI nation. According to the experience of developed countries, since our country has already been great producing nation and great trade nation, the next step is undoubted to march to the great FDI nation.There are five chapters altogether which contain introduction and four chapters of the main text. These chapters will unfold according to the following thoughts:Chapter I:First, this part will introduce the background of selecting the topic and the researching significance, and summarize the researching documents of domestic and foreign FDI theories. Then explain the writing thoughts of this article and the research methods. Finally, the frame structures will be made plain.Chapter II: The present developing situation and characteristic analysis of China's FDI. This part first reviewed the development course of China's foreign investment. Based on this, we will empirically study the present situation and the developing trend of our country's FDI. Then judge the stage which the FDI of our country locates on currently. After that, we will analyse the characteristics of China's present FDI from the four aspects such as the main body, the regions, the industries and the ways of FDI.Chapter III: The requirements for a great FDI nation have been realized in China. We will prove that the requirements for large-scale foreign direct investment have been realized in China from the two aspects, theory basis and realistic foundation .According to the theory of investment developing cycle proposed by the English economist, J.H.Duning, in fact ,our country's FDI has already entered the third stage of FDI which means developing large-scale FDI. Seen from the realistic foundation, first, China has really become the great producting nation and the great trade nation. Next, the superiority of proprietary rights about China's FDI also appears day by day. Additionally, Chinese enterprises have suffient strength in capital supply to carry on the large-scale foreign direct investment. Moreover, the increasing domestic market pressure and the heightened international trade friction will propel the development of China's large-scale FDI. Finally, the Renminbi has entered the appreciated cycle, and in the future Renminbi will continue to appreciate. This situation will certainly impel the China's FDI to develop more greatly.Chapter IV: The disparities between China and great FDI nations. Our country's FDI has entered the rapid growing track, and China has become one of the main FDI nations. However, compared to the great FDI nations such as America, England, Japan and so on, we still have a long way to go. This part will separately analyze the disparities between China and the great FDI nations from some aspects such as the main body, the regions, the industries, the ways of FDI and the government function in the FDI.Chapter V: The strategic paths through which China moves towards the great FDI nation. In view of the disparities between China and great FDI nations, we will propose the ways to the great FDI nation and give some suggestions, which mainly includes: cultivating the competitive large-scale multinational corporations, optimizing the industrial structure of FDI, expanding the FDI of studying type to the developed countries, and enlarging the transnational consolidating and purchasing while pay more attention to attendant conformity. In the meanwhile, our government should bring its supportive functions into full play.