American FDI And Chinese Agricultural Industry Security

Agricultural industry is the foundation of a nation. Since China started Reform andOpening, agriculture continuously improves its ratio of using foreign investment, which alsoincreases the effect of foreign capital on China’s agricultural industry. The research of effectof foreign capital on China’s agricultural industry is the guide to develop the utilizationefficiency of agriculture and make proper foreign investment attraction policies.This thesis combines theoretical analysis with empirical analysis, to investigate howforeign direct investment affects the host country’s agricultural industry security through theway of bilateral trade. This thesis chooses China and the USA as research object, and throughthe way of investigating the FDI of manufacturing food and agricultural trade between Chinaand the USA, to analysis the effect of the American FDI of manufacturing food in China onChina’s agricultural and manufacturing food industry security.Firstly, a summary and review of domestic and foreign research on agricultural industrysecurity, the effect of foreign capital on agricultural industry, and the relationship betweenFDI and bilateral trade is carried out. Then analyzes the channels such as bilateral tradethrough which foreign direct investment affects agricultural industry security. Next, the articledescribes the developing history of American FDI on Chinese manufacturing food as well asanalyzing the current situation; and has an aggregate and constructional analysis ofmanufacturing food comtrade between China and the USA. Finally, the article uses the FDIand comtrade data to have an empirical research. The result shows that, in the long term,American FDI in Chinese manufacturing food promotes the export to the USA and the importfrom America. It also instructs that as China has taken part in the WTO, American FDI onChinese manufacturing food have a much stronger effect on the bilateral trade, which willimprove the effect the China’s agricultural and manufacturing food industry security...