Japan's Direct Investment In China On China's Economy

Since the reform and opening up, with China's rising international standing, China's ability to attract foreign capital is also growing, China attracting foreign capital rank the second following the United States in the world in 2009. Japan, the world's largest investment in the country—has always regarded China as one of the most important investment places. Japan's direct investment in China bring a significant positive influence to China's economy, for example, promote the rapid development of China's high-tech to some extent, provide a large number of operating post, But the negative effects can not be ignoredThis paper summarizes the related literature study about the Japanese direct investment in China, summed up the main research of the Sino-Japanese scholars about Japanese direct investment in China, their studies including the influence of Japanese direct investment in China to Sino-Japanese trade, Japanese direct investment in China caused Japanese industry shift and the hollowing out, and the choice of investment location, as well as technology transfer, industrial structure and employment in China, influence of Japanese economy and so on.Second, the paper overviewed Japanese foreign direct investment situation in China, started from the motives of Japan investment in China, Then this paper discussed the changes of the total amount of Japanese investment in China, the Japanese investment industries in China, location selection and the form of investment and so on.In the above basis of the study, through large amounts of data, the paper comprehensive analyzed China's economic impact of Japan's direct investment in China, the focus from macro-level analysis of Japanese direct investment in China on six major implications, such as China's Industrial Structure, energy saving and environmental protection, Sino-Japanese trade, as well as high-new technology, employment and gross domestic product. Especially, it emphasis on the industrial structure influence, the author think the Japanese direct investment in China impact on industrial security significantly. From the micro-level analysis of Japanese direct investment in China, The major impact on China's economy consists of two aspects:Chinese human resources, and enterprise management level. Overall, Japan's direct investment in China on China's economic influence is positive.