Fdi And The Development Of China's Leasing Industry

The main viewpoint of this paper is that to satisfy the demand created by rapid economy growth, it is necessary to introduce FDI investments to China's leasing market. FDI should start the investment with Vendor Finance. It is feasible for FDI to invest in China's leasing market to achieve its long term goal. Although FDI will be limited by current leasing policy, however the emergence of the investment will impel the policy making process and make China's leasing market to develop much healthy. Firstly, to elaborate this main point, the paper has reviewed the history of China's leasing industry development and compared current situation of China's leasing industry with foreign countries in the market scale, the leasing mode, the penetration coefficient and the leasing incentive policy. Through the review, this paper has found the problem of China's leasing market development and given the answer, which is to introduce FDI to China. The paper has analyzed the benefit to China's economy after introducing FDI investment from micro and macro view. The conclusion is that to introduce FDI to China's leasing industry is necessary. Secondly, the paper has analyzed the feasibility of FDI investing in China's leasing industry by using relevant theories from the investment goal of FDI and the attraction system of China, enumerated real cases of the vender finance to show the capability of FDI in the market and the product development, the profit mode and the venture control. The paper thus concluded that FDI will have the market share of China's leasing market and it can benefit from the investment. Finally, this paper has shown the factors that will impact FDI developing in China's leasing market and proposed the active suggestions on the foreign exchange, finance, tax revenue, customs, and national credit system.This paper has adopted the practical examples of vendor finance in feasibility analysis of FDI investing in China's leasing market. The view is new and has practice significance. The paper has created a simulation model and used the chart of process to analyze. The paper is valuable in its suggestions of making policies and rules of leasing industry and in analysis the factors which will influence the FDI development in China's leasing market.