The Influnence Of FDI To The Unimblance Development Of Trade Between China And American

Since the reform and opening in China,trade between China and America has developed fast,especially after China entered into the WTO,the scale of trade between China and America got larger and larger,and the scope got wider and wider.And the trade gap between China and America got larger and larger.Although the global financial crisis that broke in2008made the value of import and export between China and America cut down,the trade gap between China and America get diminish relatively,in recent years,trade between China and America presents a rising trend,the trade gap between China and America is getting larger and larger. With the speed development of trade between China and America,foreign direct investment in China is getting more and more,and its scope is getting wider and wider.According to the theory of the relationship between foreign direct investment and international trade,there are complementary relationship or subsitutional relationship between them.So there must be a relationship between foreign direct investment and trade between China and America,So,analysing how does foreign direct investment effect trade imbalance between China and America,has great influence on remitting the trade imbalance,and promote the healthy development of trade between China and America.First of all,the paper reviews the achievements about the relationship between foreign direct investment and international trade,and then,analysis the trade pattern between two countries,in the condition that capital can flow free,which lays a theoretical foundation for next study.Secondly,the paper examines the dependency between foreign direct investment and trade between China and America with the method of empirical analysis.and then examine the Granger causality of the two.On the basis of empirical analysis,the paper analysises how does foreign direct investment effect the trade imbalance between China and America,from the angle of the scale,the business structure and investment source of foreign direct investment. At last of the paper,the author gives some advices about how to remit the trade imbalance between China and America.