The Empirical Analysis Of FDI On Independent Innovation Of Auto Industry In China

China has joined WTO for ten years. Chinese auto industry had the best and thefastest development in this ten years. Especially after dealing with the internationalfinancial crisis suceesfully, the production of Chinese auto industry has been rankednumber one in the world in two consecutive years, china has been the biggest producerand consumer of the car in the world, and it begin to become strong. During this process,the promoting of independent innovation of Chinese auto industry is the key. In thebackground of economic globalization, getting FDI is the important way to learn theadvanced technology, advanced knowledge, advanced management experience for ourauto industry, so FDI must has the impact on independent innovation.At the beginning of the reform, our government carried out the”market fortechnology strategy”, and it has attracttted lots of multinational auto enterprises investingin China, and our auto enterprises entered into joint venture cooperation stage. Especiallyafter China joining the WTO, with the opening degree of China intensifing, theintroduction of foreign capital and technology have greatly accelerated. It leads to theincreasing of the production and sales volume, promoting the development of the carindustry, improving the whole technology level of the car industry, and the car industrybecomes an important pillar industry of the national economy and the important strengthto promote the economic development and the employment. But more and more peoperbegin to questioned the policy, they think that the introduction of FDI has caused aproblem, which is that the domestic automobile enterprises relying too much on foreigntechnology, and ignoring the assimilation and independent innovation. This has been anbarrier to improve independent innovation capability of Chinese auto industry.According to the debate about the impact of FDI on independent innovation, thispaper tries to clear the relationship between FDI and independent innovation by theempirical analysising, and clear wether FDI enhancing independent innovation ability ornot. Based on this, we can make policy about how to use FDI to Strengthen independentinnovation ability.This paper has four parts. The first part expounds the theoretical foundation of theimpact of the FDI on the independent innovation of auto industry, and summarizes the relevant theories about independent innovation. The second part analyses currentsituation of using FDI in Chinese auto industry and independent innovation of chineseauto industry. In the meantime, this part points out that the problems of independentinnovation in Chinese automobile industry. The third chapter discusses the relationshipbetween FDI and independent innovation by using statistical model, and finds that FDIhas a important role in promoting independent innovation ability. Based on the analysisesof the former three parts, the last chapter makes suggestions on enhancing independentinnovation ability of our auto industry from the point of government and auto industry.