Chaoyang City Use Of Foreign Direct Investment

Chaoyang Municipality is located at the westernmost part of Liaoning Province. As a member of Liaoning Old Industrial Base, Chaoyang has made a valuable contribution to the economic development of Liaoning Province since the establishment of the People's Republic of China. Facing all aspects of changes brought by the opening-up policy as well as significant impacts caused by the rapid development of newly-established industries at China's southeast coastal region, a series of problems has appeared and greatly hindered the economic development of Chaoyang Municipality, which is just similar to the situation in other parts of Liaoning Province. At the present moment, in order to accelerate the reform process of Chaoyang Municipality as a member of Liaoning Old Industrial Base, it is very necessary to reform state-owned enterprises and utilize the remaining state-owned assets by attracting foreign direct investment (FDI).In terms of economy Chaoyang Municipality is a relatively backward region in Liaoning Province, not much study on FDI utilization in Chaoyang has yet been made. As a result, this paper makes an innovative point and combines comparative analysis, theoretical analysis and practical analysis. This paper begins by clarifying the research background and the significance of choosing the topic, then it comprehensively studies the current status of FDI utilization in Chaoyang Municipality. FDI definitely promotes the economic development of Chaoyang Municipality, but at the same time it raises many questions concerning the utilization of FDI in Chaoyang Municipality as well. By comparing and analyzing the FDI utilization status of each individual municipality in Liaoning Province, the disadvantages of FDI utilization in Chaoyang Municipality are revealed, but this fact also implies that Chaoyang Municipality has a potentially larger space for further utilization of foreign capital. This paper compares the actual FDI scale with the moderate FDI scale in Chaoyang Municipality as well as evaluates the investment environment including macro environment, regional environment and internal environment. Finally relevant policies and suggestions are proposed, so they could be used as a reference by Chaoyang Municipality and other economically underdeveloped region in the northeast region to solve problems concerning foreign direct investment.