On China's Small And Medium Enterprises To Attract Foreign Investment

The medium-sized and small enterprises (MSE) have already become an important force in the Chinese economy. However, many problems such as the lacking of financing and the low technological level still puzzle the MSEs. These problems hamper the development of MSEs. Currently China is one of the countries that are attracting the most foreign direct investment (FDI) in the world. If the MSEs can make the best of the foreign direct investment, to a certain extent, they can solve the problems of Chinese MSEs. It is just an aim of research in this thesis.This thesis can be divided into five chapters:The first chapter introduces MSE briefly in the beginning. The implication of MSE at home and abroad, the course of Chinese MSEs development and the problems in the course of development.The second chapter introduces the implication of FDI and the actual situation that Chinese MSEs make use of the foreign direct investment.The third chapter lays emphasis on the significations of Chinese MSEs attracting FDI. first, it alleviates the pressure of financing. Second, it improves the technological and managerial level. Third, it increases employment. Fourth, it improves the exports. Fifth, it expands the space of making use of the foreign investment.The fourth chapter mainly assays the favorable and unfavorable factors which affect the attraction of FDI. In the following ten years China will keep the stable growth of attracting the foreign direct investment. The labor-intensive industry will continue to be a sector which can attract more FDI. In tertiary industry the growth rate of making use of the foreign investment will continually accelerate. The economic growth is continuous. More foreign investors are paying attention to the MSEs in our country. All these factors above are favorable factors. However, because of the information asymmetry, many disadvantages of MSEs themselves and lack of the policy support, it is difficult for MSEs to attract FDI.Because of the great significations of attracting FDI and the existence of unfavorable factors, in the last chapter the author suggests as follows, in the first place, we can set up the complete MSE credit evaluation system. In the second place, we can establish the MSE self-discipline system. In the third place, we can establish the complete legal system. In the fourth place, we can establish the MSE socialized service message network system. In the last place, we can greatly develop the MSE industry cluster.For the problems of MSEs many domestic and foreign scholars put forward a series of solutions which alleviate the problems of MSEs. For example, some scholars think the MSE credit guarantee system can make the MSEs use funds easily. But the nature of the guarantee organization and the source of the funds and the risks and so on are difficult to be solved in a short period. Recently China succeeds in attracting FDI in spite of quantity and quality. The innovation of the thesis is that it create a new way to improve the quality of the MSEs(such as technology, management and talent) and to alleviate the difficulty of funding according to the actual situation and the developing tendency of attracting FDI in our country. This thesis mainly makes use of a good deal of data and discusses deeply the problems of MSEs from every aspect.