A Research Of Using Chinese Enterprises’ Outward Foreign Direct Investment To Make China’s Industiral Structure Upgrade

Chinese economy has gone through more than35years’ rapid developmentsince the reform and opening up was put forward in1978, otherwise in2010Chinasurpassed Japan to become the world’s second largest economy. With the rapiddevelopment of China’s economy, the phenomenon that China’s industrial structureis unreasonable highlights day by day. In this context, Chinese government thinksthat we should accelerate transformation of China’s economic development modeand promote the optimization and upgrade the industrial structure.Foreign direct investment has a rapid development since the Second World War.Accompanied by the development of economic globalization and trade liberalization,and the transaction cost’s reduction caused by technology such as information andcommunication, more and more companies will break through the geographicalrestrictions, allocate resources in the global to achieve the optimal allocation.Therefore, foreign direct investment will go on expanding in the future.This paper will put China’s outward foreign direct investment and its industrialstructure’s upgrading together. Through the analysis of the status of China’sindustrial structure, I will find out the unreasonableness of China’s industrialstructure. And then describes the relationship between the outward foreign directinvestment and domestic industrial structure’s upgrading, and from five aspects ofoverall scale, regional distribution, industry distribution, subject and way to describethe status of China’s outward foreign direct investment. In the end, based on thepurpose of promoting industrial structure’s upgrading, I will put forward somesuggestions from the macro and micro levels.