On China's Use Of Fdi Regulation And Legal Regulation

China has passed through a gradual increase and maturation in utilizing FDI during past twenty-seven years. China has been the world's largest FDI recipient since 2003. The structure of FDI is shifting quietly at the same time. Frankly speaking, FDI has made great contributions to economic growth of China. However, there are severe problems in utilizing FDI. How should we recognize and treat the function of FDI in new situations? It is an academic and practical question relating to economic growth of China. This dissertation points out that China should take a positive policy in utilizing FDI. At the same time, the author makes a difference between the questions originating from market and the questions originating from government failure to the problems we are facing. Correspondingly, governmental measures and legal measures are provided.The dissertation is composed of four parts. The first one is an academic analysis on the treatments of developing host countries. It is submitted that policy selections on the treatment to FDI in host countries depend on economic and institutional factors. The relationship between the above factors and FDI inflows is discussed thereof. All of them are based on the positive and negative attitudes on the influence of FDI to developing host countries.The second part deals with the China's attitude selection on FDI. It is suggested that China should take the opportunities and make use of FDI positively to facilitate China's overtaking developments. This view is based on the realistic analysis on the international environment and domestic factors of economy and institution. The third one is on the China's market failures and government regulations on FDI. Some concrete measures are provided on the analysis of market failures in utilizing FDI, such as market monopoly, industry manipulation and environmental contamination.The last part deals with the governmental failures and the legal measures on utilizing FDI. The concrete measures are supposed and the legal framework on utilizing FDI are provided thereof. Such measures and framework are based on the market failures in utilizing FDI, such as regulatory capture, government corruptions, regulatory Lag ,low efficiency in foreign-owned enterprises and government regulations.This dissertation makes use of the research methods of practical analysis and deducing analysis with the guide of international direct investment theory andgovernment regulation theory of industry economics and fundamental theory of economic law collectively. On base of the above research methods, it is concluded that China takes opportunities to utilizing FDI to develop our economy without hesitation in international and domestic environment. Meanwhile, China should not worry about the existing problems and should take corresponding government regulation and legal regulation to utilizing FDI most efficiently on the basis of full reorganizations of the reasons and essence of these problems. This dissertation provides the academic and practical foundations for our out-open policy and solves the concrete problems, which is be of guiding significance to the practices of China's utilizing FDI.The prominent features in academics of this dissertation are its adopting the theories of industry economics and legal science without limitation in investment theory. It focuses more on the essence of the problems contrasting with other academic views in this field. It is the author's creative contribution to consider the legal regulation to overcome the government failures.