New Changzhou High-tech Zone To Attract Foreign Direct Investment Thinking

Changzhou National Hi-tech District (hereinafter abbreviated as CND) is a State-level hi-tech industry development zone. From its establishment to the end of Year 2007, CND has accumulatively attracted the foreign direct investment (FDI) of 6.98 billion US dollars, and has become the most conspicuous "window" of Changzhou's opening up to the outside world and an important growth point in the City's economy. CND is one of the industrial development zones in China which enjoys the highest investment returns.CND began to lose the momentum in attracting FDI in recent years, due to the changes of international and domestic situations. The financial crisis starting from the U.S and spreading to Europe exerts substantial influence on CND in attracting FDI. At the same time, the Chinese Central Government abrogated the tax incentives to FDI and raised the environmental emission standards. Under these circumstances, it is of great practical importance to study how to make breakthroughs in attracting FDI in CND.This dissertation, based on the introduction to the background, explains the definition of FDI and relevant FDI theories, followed by the brief narration of the actual FDI situations in CND. Then, it analyses in details the favorable and adverse conditions facing CND in attracting FDI, based on which, this dissertation makes a conclusion that CND has to be innovative in methods and industrial fields in attracting FDI. Only through this way, CND can improve the local industrial chain and promote the development of foreign economy in a better way.