Fdi Affect The International Competitiveness Of Chinese Industry

The overall economic strength of one country is determined by the international competitiveness of its major industries. The international competitiveness in the twenty-first century should be governed by comprehensive national strength which based on industrial international competitiveness. As a developing country, China has attracted a lot of foreign direct investment since opening and reforming to the outside world. The trends of the international competitiveness are becoming obvious. As one of the leading and strategic industries , the Electronic and Telecommunications Equipment Industry has absorbed a great deal of investment. It has become one of the industries that have strong industry competitiveness. This paper aims to analyze the detailed influences of FDI which helps to make the relevant policies.Firstly, this paper reviews the relevant theories,resources,evaluation methods and researches on international competitiveness and FDI. Secondly, on the basis of the current general industrial international competitiveness theories and its evaluation methods , selected the main index that influence the Electronic and Telecommunications Equipment Industry according to the principle of importance. This paper analyzes the status quo of China's the Electronic and Telecommunications Equipment Industry based on these index. This paper uses Principal Component Analysis and Regression Analysis to demonstrate the factors that affect the industry competitiveness and the positives and negative influence of FDI on the Electronic and Telecommunications Equipment Industry. Finally, this paper also brings forward some suggestions about how to enhance the international competitiveness of the Electronic and Telecommunications Equipment Industry from the levels of the country,industry and enterprises.This paper uses Principal Component Analysis to obtain the international competitiveness of the Electronic and Telecommunications Equipment Industry by using the obtained statistical data. Then we can obtain a positive correlation between FDI and the Electronic and Telecommunications Equipment Industry by using the Regression Analysis. In recent years,the foreign capital has an influence on the comprehensive international competitiveness gradually reduced. These results show that we need to make further efforts to use the foreign capitals. But the core technology of the Electronic and Telecommunications Equipment Industry has been controlled by the foreign enterprises. As a result,this situation impacted on the local enterprises to improve the innovation and management abilities as well as brand building abilities.According to this situation, the central government should promote the innovation, prevent the monopoly, constitute relevant laws and maintain a fair market. Meanwhile, the local governments should increase their efficiency and transparency, improve the functions of the relevant departments and maintain the continuance of the supporting policies. In addition, more industrial organizations should be set up in order to make efforts on promoting cooperation and facing anti-dumping issues. The corporate should increase their investment on techniques and brand buildings and practice the Merger &Acquisition strategies.The main contribution of this paper is making a study on the foreign direct investment and the Electronic and Telecommunications Equipment Industry ,constructing a factors system about this industry which affected by the FDI. This paper enriches the research on the international competitiveness in specific industry. This paper also provides the basis to formulate the policies on attracting foreign investment.