Characteristics And Economic Effects Of Fdi In China Evolution

With the opening up and reform for 30 years, China has attracted an amount of foreign capital, especially Foreign Direct Investment (referred as "FDI" below). FDI has made a great influence on China's economy. However, FDI structure is unbalanced in terms of industries involved, regions involved, technology involved, etc. All of this brings new challenges to study on FDI-related theories, especially on the consolidation of theories concerning the relationship between FDI and domestic economic development.The author first does literature research, then consolidates the results and investigates current status of FDI in China. Based on micro/macro-economics theories, the article does a comprehensive analysis of FDI's economic effects through three angles: FDI policy, FDI scale and FDI structure. The features of FDI policy is moving towards "being fair between FDI and domestic investment"; the features of FDI scale is "going up smoothly, focusing on FDI quality rather than quantity"; the features of FDI structure is "transferring of source, industry and area involved". Besides, given the financial crisis recently, new trend of FDI both domestically and globally is talked about as well.At last, suggestion is put forward: overally to improve investment environment and strengthen management system of FDI usage security; structurally to promote FDI-related industry upgrading and transfer to middle and western areas.