A Study On The Utilization Of Foreign Capital In Honghe Prefecture In The Context Of Yunnan Province

China gradually accelerated the pace of opening up with the reform and opening up. More and more FDI in China has become an important driving force for China’s economic restructuring and upgrading, China has been the country using most foreign capital during last 20 years among the developing countries.AS an outreach ASEAN countries and inline bridge southwest hinterland place, Yunnan Province has a natural geographical and resource advantages, it made a significant contribution in the process of China’s opening up. In 2011, the State Council made the "support to accelerate the construction of Yunnan important bridgehead for the Southwest opening up", to make the opening of Yunnan Province rose to the national strategy. While, a new round of western and others major development strategies deepens the development process of Yunnan border opening. as the less developed western province with a small GDP, Yunnan’s economic development obviously is constrained by factors gathering. While Yunnan’s improvement is still relying on investment-driven, so how to fully utilize and integrate external resources, and then take the later mover advantage is the key to realize great-leap-forward development. Hong he Prefecture has a unique advantage of an open border, but the degree of utilization of foreign investment lags far behind other regions in Yunnan Province. Therefore, researching the problem of Yunnan border open process of using foreign capital, with the example of the Hong he Prefecture, contribute to find the problems during the process of utilizing foreign capital of Yunnan Province, thus giving more specific and easier suggestions to implement measures recommendations.Based on the available literature to collect a lot of data, the research carried out specific information, the induction and deduction Combination, quantitative and qualitative wears supplement. On the basis of a comprehensive analysis of the background under an open border foreign investment in China’s overall situation on the border of Yunnan Province, it is the overall situation in the open process of using foreign capital to summarize, and the R Hong he Prefecture to focus on, the use of foreign capital in Hong he Prefecture problems in the process to analyze with the status of its use of foreign capital, while using of industrial policy guidance matrix model selection guide. Finally, this paper proposes the use of effective measures to transform foreign effectiveness recommendations of Hong he Prefecture.