On Current Problems In Foreign Direct Investment In China And Realistic Countermeasures

Since the reform and opening up to the outside world, the increasing foreign investments has played more and more important role in our country economy. But before the 1990s, the investors were mainly from Hong Kong and Taiwan region, which caused the problems of dispersive investments, the same framework, low-tech quality, etc.; after the 1990s foreign investors rocketed into China, which formed some kinds of new industries and reduced the distance from the advanced level in the world. Meanwhile the joint venture with the state-owned enterprises promoted the increment of the state-owned assets quantities. There also showed some new problems, such as technology and market, national brands and foreign investments and so forth, which couldn't satisfy us. Although the foreigner not only produced benefits to our country but also caused some loss in our country's economy, yet all the high-level, hi-tech, high-standard and large-scaled international production, investments and trade activities all will work on the base of transnational corporations. So now there is a severe challenge for our country's economic policy: attract foreign investments and technology but not throw out the independence and self-determination of our own technology; introduce the advanced technology and products from developed countries into China, but not make the foreigners monopolize the domestic market in the process of using market exchange for technology; use foreign capitals engraft and reconstruct the state-owned enterprises but not make the foreigners completely control the enterprises; making use of opening up to the outside world .