Comparative Analysis On Foreign Investment Structure Of China And Russia

After the financial crisis in2008, international industrial restructuring keeps a slow pace and global direct investment grows sluggishly. The global economy remains in a fragile recovery process on account of risk and regulatory uncertainty for prolonged periods. However, accompanied by the deepening of global economic integration, China and Russia are more and more deeply into the tide of economic globalization, and play an important role in the world economy during the financial crisis.Compared with the developing economies in the general sense, the transition countries transferring from traditional planning system to market economic system have their own distinctive features in many aspects including economic development, stages of economic development and economic trends. Due to lack of experience for reference, China and Russia that promote economic restructuring and growth through utilization of foreign investment have a certain degree of uncertainty and exploratory. Unreasonable investment structure will not only does not promote the economic growth of transition countries, but also cause industrial structure imbalance, regional uneven benefits distribution, as well as foreign investment excess dependence on single source which are the range of issues affecting the economic security and stable growth. Additionally irrational factors in the use of foreign capital are very easy to be covered up in the economic restructuring and the overall prosperity.By study on the importing patterns, places of origin, regional distribution and industrial configuration of foreign capital, compare differences and commonalities in attracting investment process in China and Russia, we will get a profound understanding of some practical issues and potential threats that exist in the transition countries attract investment through the surface their high performance, except for the positive effects of the use of foreign capital on the economic growth, social development and transition process. Transition countries’governments should focus on the utilization of foreign capital structure optimization, take the initiative to explore new approaches and new ways to attract foreign investment, specifically consider the future development strategy for utilization of foreign capital on the basis of the real characteristics of national economic transformation, breakthrough the shackles of the previous planned economic system, and adopt a flexible and effective macro-control measures in the process of economic transformation.Based on the generalized concept of transition countries, and the length and the focus of comparative analysis, the study takes China and Russia as comparison examples. The reason for the objectives is that China and Russia as the world’s two large economies, are not only for the same historical background of the planned economy system, but also in a specific stage of economic transition, and they are very comparable in many ways. In addition, in the process of economic transition China and Russia have a great difference in the specific strategic objective and practice path which make the comparative study of two countries significant and typical and the study can provide a reference for the other transition countries in the issues of investment structure.This study is generally on a comparative approach and the longitudinal and lateral comparative methods, to make the overall discourse more clear and comprehensive. This study includes four parts with the arrangement of the chapters below:First, define objects, purposes, and methods in this study, to provide theoretical support. At the same time collect relevant theories and researches to clarify the basic questions of this study and its theoretical and practical significance.Second, make comprehensive comparative analysis including importing patterns, places of origin, regional distribution and industrial configuration of the utilization of foreign investment focusing China and Russia, two typical transition economies in order to analyze differences and characteristics of the structure of foreign investment situation in China and Russia.Third, in view of the comparison of the similarities and differences in foreign capital structure of China and Russia, the chapter tends to understand the potential roots impacting the foreign capital structure of China and Russia as well as countries in transition.Finally, based on the discussion above, the chapter gives possible adjustment and approach to our country on related problems.