China's Foreign Direct Investment In The Industry Choice

When entered in 21 st century, the economic globalization is becoming the main trend of economic development of the world day by day. The rapid development of the international direct investment features greatly in the economic globalization, and it is an important driving force of the economic growth of the world. In the face of the intensive international competition, the countries have to develop foreign direct investment actively, establish international production systems, conduct transnational operations, so as to take favorable position in the future economic pattern.Through the reform and opening-up of more than 20 years, the internationalized level of economy and the strategic level of opening to the outside world of our country are improving. In order to promote the development in an all-round way of the export-oriented economy of our country, to occupy a space in the course of economic globalization, we must develop foreign direct investment actively while utilizing the foreign capitals. To import and to export is the two indispensable respects for a nation in establishing the system of open economy. The foreign direct investment of China is still at preliminary developing stage, to develop foreign direct investment further, it is essential to have the industries meeting international market demands and having international competences.This paper has been composed under the background of economic globalization and based on the experiences of foreign direct investment practice of some nations and regions. The issue analyses both the developing process of foreign direct investment of China and the current industrial situation of foreign direct investment. The industry choice of the foreign direct investment of China has been proposed in this paper.This paper consists of four chapters, the structure is arranged as follows:Chapter one. Analysis to the international background, under which the industries of foreign direct investment of China have been operated. In this section, the background of economic globalization has been discussed, the definition and substance of economic globalization and its influence to the world economy expounded, and also, the fact of global industry structure adjustment has been introduced, and, the trend of global industrial structure adjustment and the historical changing course of global industrial structure described.Chapter two. The causes and basis of Chinese foreign direct investment industries. In this section, the causes and basis of choices of foreign direct investment industries has been analyzed. The basis namely three major criteria are: the criterion of regional comparative advantage of industrial combination, the criterion of vertical trade volume in an industry, the criterion of highly homogeneity of the industrial structure.Chapter three. The international comparison of foreign direct investment industry. This chapter chooses two countries and one region that are representative: USA, Japan, and Taiwan, expounds respectively the engendering and development of foreign direct investment of the three, analyzes the changes of industrial choice in the process of foreign direct investment of the three.Chapter four. The industry choice of foreign direct investment of China. This section discusses the engendering and developing of foreign direct investment of China, analyzes,the industry distribution in the process of foreign direct investment. The chapter expatiates on the way of the industry choice of foreign direct investment of China at present: following the common rule of international direct investment, deciding the key industries to be chosen in foreign direct investment based on the developing stage of the industry in China.