China's Utilization Of Foreign Direct Investment And Strategy Research

Nowadays, with global economy increasingly integrating, China's huge potential market has attracted a great deal of foreign direct investment (FDI). 2002, China exceeded the U.S-the most developed country, and become the largest country which attracted gross foreign direct investment in the world. The function of FDI to promoting our country's economic growth is more and more significant. However, with FDI increasing, we should not only see its contribution to the economy, but also began to concern the concomitant negative impact. Research and resolve these problems, the fundamental starting point is to make FDI to improve services for China's economic construction. It should be said that after years of rapid development, we need to have a re-understanding of the relationship of using foreign capital and China's current economic and social environment.My papers reviewed the four phase of using FDI: the initial stage, the sustained developing stage, the rapidly growing stage and the structural adjustment stage, and from four aspects of using FDI which is funding sources, regional structure, industrial distribution, investment form, analyzed the situation of using FDI in China. On this basis, the paper through the comparison and analysis of data drew a conclusion: the beginning of reform and opening up, FDI make up the domestic construction funds. With the expansion of the scale of investment, utilization of FDI not only improves our quality of assets, promotes our industrial structural adjustment and upgrading, but also contributes to the technological advances and our research ability to enhance;meanwhile, FDI has tremendous contribution to total exports and exports of structural upgrading. However, in certain FDI in our country's economic development have important role, at the same time, we must recognize that our use of FDI still exist some problems that need to be resolved. My paper through the use of FDI data, analyzed the problems of using FDI. As foreign-invested enterprises regard pursuing its economic interests as the driving force to investment in China, they must find investment projects and areas of the ideal environment and high investment, which lead to our use of FDI the geographical distribution imbalance and industrial distribution imbalance;As China's industrial level constraints, the enterprises themselves technical absorptive capacity constraints and operating objectives of the transnational corporations restrictions, our use of FDI in technology transfer is unsatisfactory;Since the transfer pricing of transnational corporations has lead to China's state-owned assets lost;Furthermore, in our using FDI process, there is environmental pollution problem. Papers on these issues, raised optimize our use of FDI policy recommendations from follow aspects: Optimize the industrial structure and regional distribution structure of FDI;Preserve and increase in value of state-owned assets;Increase in FDI technology content;Focus on the utilization of foreign investment in environmental issues.