Analysis Of The Problems And Countermeasures Of Foreign Investment Approval In China

At the moment of Global economy, in order to attract and make useof foreign direct investment better, every country pays more attentionto the construction of the soft investment environment, gives moreemphasis to the normative and scientific establishment of investmentapproval system and the promotion of approval efficiency, as the limitof hardware resource like capital, land, energy, labor force etc. However,there are still problems in the foreign investment approval, includingimperfect of foreign investment law, lack of coordination betweenmanagement department as well as the contradictions and conflicts inprocess of approval, which have negative impact to the standardized andefficient approval. How to understand and solve these questions is whatin this article.Foreign investment approval in China is what this article researchfor. On the basis of analyzing current attraction of foreign directinvestment approval system, we discuss the problems in the practice ofapproval and seek methods of solving, combined with economics andmanagement, integrated use of comparative analysis, case analysis and legal economics. Especially analyzing and discussing formatting approvalintroduced by Ministry of Commerce.This article is composed of five parts:The first part introduces and analyzes the basic theories of foreigndirect investment. In order to research current foreign investment systembetter, this part describes the concept, feature and business form offoreign direct investment, current domestic and abroad attraction offoreign direct investment, analysis of approval system of investment.The second part searches the operation of the foreign investmentapproval system. The institutions, authority and procedures of foreigninvestment approval are analyzed respectively. WuXi, as an example, wediscuss the approval status, restriction of development and correspondingmeasures according to specific approval authority in specific city.The third part, on the basis of above two parts (theoreticalexplanation and current operation), we know some problems in the foreigninvestment approval which includes three parts as legal basis, approvalmanagement department and approval operation, and analyze the reason ofthese problems.The fourth part is on basis of issues raised in the third part. Weintroduce specific measures and discuss the feasibility. And also weanalyze and evaluate the foreign formatting approval introduced byMinistry of Commerce. Finally we cancel the foreign investment approvalsystem.The last part is summary of this article. Now the foreign approvalsystem won’t be end but for a long time. We will continue to explore andpractice.