The Impact Of Inward FDI On The Chinese Electronics Industry And Countermeasure Suggestions

In the past three decades, as the international economic globalization develops ina deep way, the communication and cooperation between developed countries anddeveloping countries become increasingly close. The large market of developingcountries creates a favorable condition for attracting foreign direct investment.According to the data of World Investment Report, in2012,the total volume of foreigndirect investment absorbed by developing countries surmounted the developedcountries for the first time. The growth rate is bigger than8%every year. Impacted bythe global financial crisis happened in2008,the total number of foreign directinvestment attracted by developed countries has decreased in a gradual way.China, asthe largest developing country,in2003,China has surmounted America to be the mostcompetitive country in attracting foreign direct investment.As a large amount offoreign direct investment enters into Chinese market，sound conditions can be createdto maintain the continuous economic growth. And many industries can take thisopportunity to pursue a brisk development. From1978to2013, under the help offoreign direct investment, an average growth rate of Chinese electronics industry hasarrived at20%.The level of productivity and the competitive power of products havealso achieved a prominent promotion.The paper is divided into six chapters. The first chapter is introduction. Itexpounds the domestic and overseas research situation as well as the research thoughtand main content.The second chapter is the overview of foreign direct investment.Themain related concepts and developing situation are mentioned in this chaper. The thirdchapter is to review the development history of foreign direct investment attracted byChinese electronics industry and the characteristics of foreign direct investmententering into Chinese electronics market.The fourth chapter is the main point of thispaper. It mainly probes into the impacts of inward foreign direct investment on theChinese electronics industry and domestic companies.In the process of the analyse of the impacts of foreign direct investment on Chinese electronic industry, a start is setfrom the factors of influence which include foreign capital,the numbers offoreign-owned enterprises, human capital optimization as well as technology input inorder to analyze Chinese electronics industry. In the process of the analyse of theimpacts of foreign direct investment on domestic companies, the competitive powerof products, technology innovation ability as well as management models are mainlydiscussed in this part. Besides,the problems which Chinese electronics industry meetsin using foreign direct investment have also been expounded in this part. The fifthchapter is to provide some countermeasure suggestions of foreign direct investmentused by Chinese electronics industry in allusion to the problems which Chineseelectronics industry meets in using foreign direct investment. The sixth chapter is theconclusion part.