Direct Investment In Foreign Private Enterprises

With the wave of economic globalization and entering into WTO, Chinese privateenterprises have carried out the “Go Out” strategy. The excellent mechanisms andpromising development tendency of private enterprises will herald them be the main forceof China’s foreign direct investment. In addition, the China Twelfth Five-Year Plan alsoclearly encouraged the development of private enterprises. As more and more privateenterprises carried out the foreign direct investment, like Wanxiang Group, Huawei,Lenovo, successfully entered the international market and set up the factories overseas. Butit is still difficult to get rid of the negative image of “Made in China” because if its qualityis not guaranteed. Nowadays, technology and innovation is the key part to get the corecompetitiveness of a country and technology spillover becomes one of the importantchannels for a country to get advanced technology. What’s more there is inseparablerelationship between FDI and technology spillover. So this paper select private enterprisescarry out foreign direct investment as study object to explore the spill effect of technologyand human capital both sides by this process Meanwhile, combined with HuaweiTechnologies Co., Ltd. as a case study of private enterprises to further study foreign directinvestment.