From The Location Of Foreign Direct Investment Changes In Western China's Economic Development Opportunity

With the rapid development of the opening and reformin our country, more and more foreign direct investmentshave come to China. In 2002, China attracted the most FDIin the world. The inflow of FDI has become one of the mostimportant reasons for the rapid economic growth in China.But due to the differences of government policies and theendowments in different regions, the distribution of FDIhas been very imbalanced. Most of the FDI concentratesin eastern coastal areas of China, while the FDI in Centraland Western China is very limited, especially in WesternChina. In recent years, there is a trend that FDI in ourcountry has moved northward and westward. In thebeneficial environment of China' s Open -up the WestProgram, the 11th Five Years Plan and China' s WTO Entry,the westward movement of FDI might be a momentum for thedevelopment of Western China. The government of westernareas should evaluate the situation and work out relevantlaws and regulations to improve the local economy. Thispaper introduces some theories related to the locationof FDI and shows the current situation and the trend ofchanges of FDI in China through some detailed data. Thenthe paper analyzes the current situation of FDI in WesternChina and puts forward some suggestions according to theproblems on attracting FDI. The paper comes to theconclusion that under the beneficial macroscopicconditions, if the government takes some effectivemeasures, the western areas will be the new hot placesfor foreign investments.