A Research On The Effect Of China’s ODI On Domestic Industrial Structure

There is no doubt that economic globalization is profoundly changing the world.Today, no country could pursue their own economic development depending solely ontheir own resources, capital, services, technologies and markets. In addition tointernational trade, overseas direct investment from global corporations has beenanother important driving force of economic globalization. Since the reform andopening up, started35years ago, economic progress of China gained the successattract worldwide attention. Even after the financial crisis, China’s economic growthrate is also much higher than the average growth rate of the world economy, includingthe economic growth in developed countries. Under the opening economy condition,China has already been the top one FDI recipients among the developing countriesand is now the world’s second largest country to attract foreign investment in theworld. Relative to the strong development of FDI, the development of China’s ODIlagged behind. But in recent years, the rapid development of China’s ODI has becomea major attraction. The UNCTAD data indicates that China’s ODI surpassed Japan forthe first time to reach$68billion in2010and reached$123billion in2013being thethird in the world.The fast development of China’s ODI has brought and will still have a profoundimpact on China’s economy, especially after the financial crisis, ODI is an importantdriving force to promote the optimization and upgrading of industrial structure, pushinnovation and reform in the domestic economy. Compared with the rapiddevelopment of ODI, the study of China’s ODI is still in its infancy. Based on thescale and motivation of China’s ODI, exploring the effect mechanisms between ODIand the structural adjustment, analyzing the effects of ODI on industrial restructuringand giving corresponding countermeasures, will have both theoretical and practicalvalue, which not only can enrich the study of China’s ODI, but also can make theappropriate policy recommendations for China to better carry out ODI.