Multinationals' Investment And China's Foreign Trade Competitiveness

The investments of transnational corporations have influenced the development of China's economy and society; meanwhile they have also affected both the quantity and the quality of China's foreign trade. Based on the definition of foreign trade competitiveness, the paper analyses the status quo of China's foreign trade competitiveness and the realities of the investments of transnational corporations in China. The paper deeply analyzes the interrelations between the investments of transnational corporations in China and China's foreign trade competitiveness by the methods of econometrics, transnational corporations operation and statistics etc. It puts forward that to induce investments of transnational corporations is the key way to improve China's foreign trade competitiveness. Finally, the paper brings forward the specific countermeasures to improve China's foreign trade competitiveness by applying investments effectively.