The Financial Support Of Foreign Direct Investment In China To Study

After more than two decades of reforming and opening up, "Made in China" has been known globally, but the Chinese enterprises are now facing three major problems to break through the sustainable growth: strategic energy and resources security, the challenge of new trade barriers and anti-dumping, optimization and upgrading of industrial structure. Therefore, in recent years, the Chinese government has sped up the "going abroad" steps to promote Chinese enterprises foreign direct investment (FDI) vigorously. However, high risk is characteristic of FDI, in addition to general risks of investment decision-making, production and operation, it stems from many uncontrollable factors of investing abroad, such as exchange rate risk, nation's political risk, that's why Chinese enterprises with less experience in international production and operating areas will inevitably encounter a series of problems and difficulties, of which the most prominent are three major "bottleneck" problems: capital, risk protection and information . To increase financial support and to provide financing, insurance, guarantees these efficient financial services, is the most important means to resolve the bottleneck problems, is an important part of effective implementation of the "going abroad" strategy, is also the government intervention and support act under WTO rules. Therefore, studying financial support for FDI has strong practical significance, and yet the study of this area past is not much. This paper consists of four parts:The first part defines the concept of FDI, elaborates FDI is the only way to China's sustainable and healthy development, and the meaning of this study on financial support for FDI.The second part makes in-depth analysis of current situation and characteristics of China's FDI, based on which with the Chinese government policies and financial institutions supporting situation, then points out the capital, risk protection and information bottlenecks of China's enterprises FDI. The third part establishes FDI financing demand model, along the thought of "dual-gap" theory and under the framework of Keynesian national income decision theory, analyzes the demanding support from government departments and the financial sectors in FDI. The results show that when there is FDI in a country, the country needs the financial support from both government departments and the financial sectors in order to achieve a balancing economic development. Moreover, when there exists "financial gap" as a result of high-risk in FDI, the government department could make up the gap with financial support so as to achieve the balancing economic development.The fourth part makes in depth analysis with cases, and further confirms the policy of financial support for FDI is essential and feasible. Meanwhile, the Chinese Development Bank create a cooperation platform which is a successful model for both Chinese "going abroad" enterprises and better cooperation with African countries as well. It makes a positive sense.