China's Foreign Direct Investment In Industry To Select

On both current domestic background and international background, there is a good turning point for Chinese enterprises'"going-out"on various domain. In view of domestic situation—RMB will appreciate in a predictable period, our industrial structure is being optimized and promoted, and increasing conflicts of international trade rigidly challenge our export, we need to promote the level of"going-out"on the base of"leading-into". Considering the international situation—multi-national corporations are developing continuously, the adjustment of world industrial structure is entering a new cycle, and international investment is expanding rapidly and become an important mark of a nation's comprehensive national power. Chinese enterprises must seize the good opportunity to take part in international division of labor and choose the appropriate industry to invest, which can strengthen the competition of corporation, lift the quality of Chinese economic development and promote the structure of industry.FDI of China began in 1979. After nearly 30-year development, Chinese overseas investment has obtained certain achievements and entered the third phase of"Investment Development Path", which adumbrates that the scale of Chinese FDI will get bigger and bigger. And, as experiences of investment accumulate and the economic power of nation becomes stronger, it is neccessary and possible for Chinese enterprises to try to do investments in varieties of industries era, which will optimize the lay-out of industry choice of Chinese FDI.However, we should also realize the problem in the industries of overseas investment while we make achievements. For example: In the investing industry of manufacture, items of investment were lack of technology, there were full of risks (especially technical and political risks), and there was short of co-ordination mechanism for enterprises carrying on FDI. In energy industry of FDI, the degree of market-oriented was not high, the mechanism of enterprise was inflexible, and the corporations were lack of money and did not establish the mechanism of avoiding risks. In the investing service industry, FDI related to trade which was of low capital and technical level took too large proportion in Chinese FDI, and financial FDI on subprime crisis background was full of risks. These issues prevailed in all industries or were prominent in particular industries. So, we must immediately innovate upon our theory of FDI, especially in industry choice era, in order to make theory fit in the practice of Chinese overseas investment. Only in this way can we guide"going-out"of Chinese enterprises properly and lift the level of Chinese overseas industry investment.Based on above issues and requirements of theoretical innovation, using the methods of combining standardized analysis and empirical analysis, of the combination of static analysis and dynamic analysis, drawing on experience of industry choice of Japanese FDI and imitating China's newly industrialized road with both industrialization and information, the author advocates that we should not only depend on expansion of marginal industry, but also take a road of all-round and multi-level industry choice when Chinese enterprises make foreign direct investment. For the sake of the goal, we should take effective measures from angles of both corporation and government, according to the actual situation in China.This paper consists of six chapters, the structure is arranged as follows:Chapter one. Introduction. The chapter illustrates the significance of research and the theoretical development of industry choice of FDI, and introduces the main ideas of articles, writing methods and general framework.Chapter two. Analysis to the Background of Chinese Industry Choice of FDI. From both domestic and international angles, the chapter analyzes the background of Chinese industry choice of FDI.Chapter three. Outline of China's Foreign Direct Investment. In this chapter, the author recalls the history of development of China's FDI, analyzes relevant data of FDI, and elaborates on the characteristics, the overall level of development and the stage of China's foreign direct investment. And then, the author analyzes the impact of China's FDI to domestic economy.Chapter four. Analysis to Industry Choice of China's Foreign Direct Investment. The chapter analyzes the current situation of overseas investment of manufacturing industry, energy industry and service industry, and then studies the existing problems of these industrial investments and their impact on domestic economy.Chapter five. Japan's Experience in Industry Choice of FDI and Its Enlightenment to China. The chapter carries on the comparison between industries of China and Japan's FDI. We can model the experience in industry choice of Japan's FDI, and propose the developmental strategy of industry choice of China's FDI.Chapter six. Direction and Policy Recommendations of Industry Choice of China's FDI. In this chapter, the author proposes a road of all-round and multi-level industry choice when Chinese enterprises make foreign direct investment. And the author recommends that both corporations and governments take effective measures in accordance with Chinese practice.