Foreign Direct Investment A New Trend And Utilizing Foreign Capital, New Strategies,

Since 90s' of the 20th century, western transnational corporations have made new momentous restructuring and development on foreign direct investment. It is very important to china to make a deep and comprehensive study of the restructuring and the development. The new tendency of transnational corporations'FDI mainly includes tow forms: (1) transnational mergence is the major way for transnational corporations'FDI. (2) international strategic alliance were widely formed among transnational corporationas. Transnational corporations establish new enterprises at abroad to invest directly and they also adopt the way of mergence as direct foreign investment. The strategic objective of transnational mergence is to rapidly expand corporations'scale, pursue scale economy, strengthen corporations' competitive capacity, promote global operating strategy, grasp the commanding point of international industry, scramble advanced technology and build corporations' whole competitive capacity.The previous competitive relations among transnational corporations were changed into cooperative relations. This is a kind of international cooperation without participation of capital, based on the principal of mutual benefit, complementary superiority and highly efficient operation. Its purpose focuses on fully utillization of external resources, obtaining economy of scale and rang, sharing risks, avoiding and preventing excessive competition and impove corporations' competitive capacity. The new tendency for transnational corporations'FDI has its theoretic reasons .Theories originate from practices and guide practices. With the development of transnational corporations, the theories of transnational corporations are in development. Transnational corporations'theories include two systems, theories of macroscopic and microcosmic analysis, microcosmic analysis theories being the essential aspect. This thesis comments on the main theories of the two systems, and relevant achievements since 80s' of 20th century of enterprise's strategic management theory. Based on the usage of some valuable aspects of various theories, the thesis analyses and theoretically illustrates the new tendency of transnational corporations'FDI such as transnational mergence and international strategic alliance. In the end ,the thesis analyses the new strategy of transnational corporations' investment in china and the new thought of china's attraction of transnational corporations' direct investment. It is the important sector of china's opening up policy and the important approach to accelerate the modernization of china's economy to widely introduce direct investment from transnational corporations. In the past 24 yeas of opening up, the introduction and utilization of foreign direct investment has experienced four stages, begin, sustainable development, rapid development and adjustment and improvement, the scale being enlarged and the level being improved constantly. To cope with the new tendency of transnational corporations'FDI and the new situation after china's entry into WTO, we should have some new policy on attracting transnational corporations'direct investment. This thesis gives 4 suggestions as follows: (1) fully utilize the opportunity of china's entry into WTO and face its challenge to the development of china's economy. (2) adjust our policy and actively participate in the competition of attracting transnational corporations'investment. (3) to develop multiple cooperation form in order to cope with the new tendency of transnational corporations' development.. (4) establish fine investment environment and new regional advantage for attracting foreign investment and actively promote the strategy of "utilize science and education to prosper the nation".