The Location Choice Of China’s Foreign Direct Investment

Previous studies and facts suggest that the home country’s Foreign DirectInvestment can expand the market and sales of its products, has access to the rareresources of domestic economic development as well as obtains the world leadingcore technology. Besides, it is more convenient for the home country to share theinternational R&D spillovers, which promotes the upgrade of its technology. In thebackground of the deepening of economic globalization, developing countries havetransformed their role of "being introduced in" to that of "going out". In the process ofeconomic exchanges among the developed countries, developing countries haveupgraded their domestic technology. In recent years, China’s Foreign DirectInvestment expands unceasingly, and the investment in western advanced countriesincreases year by year. Our motivation gradually changes from seeking productmarket and resources to knowledge and technology. This thesis employs theoreticalresearch and empirical research and case research to illustrate how to layout theForeign Direct Investment to maximize the access to international technologyspillovers. The thesis first attempts to analyze the impact of China’s Foreign DirectInvestment and the related factors affecting overseas patent in order to analysis thelocation choice of China’s Foreign Direct Investment for technology acquisition. Theresearch showed that the technology for foreign direct investment shall pay moreattention to the countries with strong potential of scientific and technologicalresources and advanced facilities of communications. China also prefers ForeignDirect Investment and large-scale Foreign Direct Investment of host countries whichare close to China in geographical location.