Analysis Of Foreign Direct Investment Prospects Of Smes In China

Since the 1990s of the 20th century, the rapid development of economic globalization becomes the general characteristics of world economy. Along with the deepening integration of economic globalization, trade liberalization is increasingly expanding, and international cooperation is increasingly closing. Since the opening-up of china, more and more foreign enterprises have landed on Chinese market, especially after china acceded to the WTO. The Chinese enterprises should face more competitors, while acquiring more opportunities. So under this background, Chinese enterprises"Walk out"could not only enhance their own competitiveness, but also help China strengthen association and infiltration with others.In recent years, Small and Medium Enterprises (SMEs) are playing a prominent role in expanding employment, revitalizing economy, increasing income, maintaining social stability and forming a rational economic structure. Many governments in the world have gradually pay attention to the importance of SMEs, and support the development of SMEs in policy, legislation, etc. In a sense, the revitalizing degree of SMEs marks the economic vitality of a country or region.Reform of Chinese economic system promoted the development of SMEs, which performing an important role in the Chinese economic development. The output value of Chinese SMEs accounted for 60% of GDP. The sales and business taxes accounted for 60% and 45% of the gross value of Chinese enterprises. Furthermore, they provided 75% employment opportunities for Chinese urban workers.Along with the changes of international environment and the strategy of "Walk out" put implemented by Party's 16th Congress, Chinese SMEs have set to go outward and have become a major force in the Foreign Direct Investment (FDI). How to operate FDI on the basis of...