China’s Foreign Direct Investment Opportunities And Challenges

The financial crisis in2007caused serious damage to the world economy. In today’s economic globalization, China is more and more integrated into the international competitive environment, the world economy while increasing interdependence, but also for countries risk. The outbreak of the financial crisis, many countries in the financial markets affected the real economy have appeared recession, the world economic situation has undergone profound changes, and now has entered a period of adjustment, academia, this period is called the post-financial crisis era.This article will summarize the theory of foreign direct investment at home and abroad, in a review of China’s foreign direct investment policy changes at the same time, summed up the characteristics of China’s foreign direct investment in the pre-crisis. The scale of investment in China from2007, is beginning to show significant growth, with net investment of$60.18billion in2010, representing an increase of26%, accounting for5%of global investment flows investment flows, for the first time more than Japan and the UK, ranked the world’s fifth; investment focus location is still concentrated in Asia, Latin America and other places, but gradually expanded the scope of the amount of investment in Europe increased from$1.09billion in2007to2010157.1,14.4-fold increased; further development of diversified investment industry formed to focus on agriculture, forestry, animal husbandry and fishery, real estate, renting and business services, financial services, wholesale and retail trade, mining, manufacturing and other industries, supplemented by industry framework; investment entities on the proportion of state-owned enterprises continue reduce the proportion of the limited liability company is rising gradually increase the amount of investment in private enterprises, foreign-invested enterprises.Crisis opportunities will bring disaster. From the perspective of international opportunities, the driving force of the world economy by developed countries gradually turned to emerging countries; China’s investment is more concentrated in the developing world, a relative reduction of the harm brought about by the crisis; RMB appreciation reduces China’s foreign direct investment costs, the economic status of our country to be raised; developed countries to increase energy and mineral resources for sale to the opportunities offered by China’s resource-based investment. In mainland China, the government adopted a series of policies to encourage and support Chinese enterprises to foreign direct investment; crisis will promote the speed of China’s industrial restructuring, accelerate the optimization and upgrading of the domestic industry; through acquisitions, mergers and foreign assets for enterprises to enhance their core competitiveness create opportunities. See opportunities, but also must pay attention to the shortage of foreign funds financing channels caused a serious financial burden will mergers and acquisitions is not smooth; strengthen the protection of national trade frictions as China’s overseas investment causing obstruction; increased exchange rate risk to China’s foreign direct investment brings new challenges.Before analysis concluded that Chinese enterprises, foreign direct investment, should seize the opportunity to size up the situation, to enhance the integrity of the strategy, and strengthen the international training of personnel in order to adapt to the rapidly changing market. Our government from the start, strengthen management and service functions to speed up the construction of the system of financial support for overseas mergers and acquisitions, and improve relevant laws to protect and support foreign direct investment behavior of Chinese enterprises, safeguarding the interests of multinational corporations in China to ensure its international market participants to compete at the same time stimulate domestic economic growth, to achieve the goal of China’s "going out" strategy.