A Study On The Influence Of FDI On Sustainable Development Capability Of China’s Foreign Trade

Since implementing the policy of reform and opening up, government attaches greatimportance to the development of export-oriented economy, the scale of foreign tradeexpands unceasingly. The value of our country’s foreign trade is$3.642trillion in2011,the second largest in the world. The development of foreign trade leads to the sustainedand rapid development of our country’s economy. China is not a trade power for thequality of foreign trade. There are some deficiencies in the development of China’s foreigntrade: the industry structure of foreign trade is unreasonable, international competitivenessis not so strong, the added value of products is low, the development of foreign trade areunbalanced among the eastern region, the middle region and the western region, incomedistribution is not balanced. Neglecting to protect the environment and the excessiveresource consumption result in the environmental degradation. These do harm to thesustainable development of foreign trade. The sustainable development of foreign tradesustainable must be the comprehensive development of economy, society and the naturalenvironment.Foreign invested enterprises accounted for half of China’s foreign trade, they affectthe sustainable development of China’s foreign trade. Reasonable utilization of foreigncapital do good to the realization of the sustainable development of Chinese foreign tradein the complicated and changeable international situation. Firstly, this article give adetailed overview on the connotation of the sustainable development of foreign trade. Thenwe construct comprehensive evaluation index system of sustainable developmentcapability of foreign trade according to the connotation of the sustainable development.Secondly, we analyze the present situation of foreign direct investment.The paper make aqualitative analysis of the influence of FDI on sustainable development capability.Thirdly,the paper handles the comprehensive evaluation index system of sustainable developmentcapability with the principal component analysis method. Relying on the method, we get acomprehensive index of sustainable development capability of foreign trade. Then wemake an empirical analysis on the Influence of FDI on sustainable development capability of foreign trade. Finally, we mention specific countermeasures of using foreign directinvestment in order to realize the sustainable development of the foreign trade.