Analysis Of The Effects Of Technology Sourcing FDI On Chinese Manufacturing Enterprises

The global economy is of low tempo and adjustment under the effect of the United States subprime mortgage crisis, and the demand of international market tends to be shrinking in future. In addition, the factors such as the saturation of market, the exhaustible resources and environmental problems are all pushing Chinese manufacturing enterprises to turn their obsolete development way and focus on the path of research and development to enhance the core competitiveness of products. There are three major ways to upgrade Chinese enterprises’technology such as independent innovation, utilize the technology spillover from foreign investment and outward foreign direct investment based on technology sourcing. With the gradual evolution of economic globalization and due to the limitations of independent innovation and technological spillover from foreign direct investment, the status of outward foreign direct investment based on technology sourcing is becoming more significant in the field of international direct investment.In recent years, as the number of Chinese manufacturing enterprises which directly invested in foreign countries for the purpose of technology sourcing is growing dramatically, the study of the effects of these technology sourcing actions has great significance for the sort of outward foreign direct investment in future.This paper is based on the theory of technology-sourcing foreign direct investment and the related theory such as institutional economics. Upon those economic theories, this paper firstly analyzes the characteristics, reasons and fulfilling premise of outward foreign direct investment based on technology sourcing for Chinese manufacturing enterprises; then analyzes the factors which constraint the Chinese manufacturing enterprises to fulfill their technology sourcing purpose on theoretical level. Thirdly, the writer draws on the results of previous studies and then creatively introduce the concept of potential effect to build a new evaluation system to analyze the effects of technology sourcing on Chinese manufacturing enterprises, such as Wanxiang Group acquired American auto-parts enterprises and Shanghai automobile Group acquired the Korea’s Ssangyong Motor, moreover through the comparison of the expected targets and the actual acquired effects to look for the essential reasons of negative technology sourcing effect; in addition, this paper also draws on the experiences of technology enhancing path in Japan and Korea to help Chinese enterprises to accelerate their success probability. Finally, based on the above analysis, the writer put forward paths from the state and enterprise dimensionalities to enhance the technology sourcing effect for Chinese manufacturing enterprises in future.