Research On The Selection Of Foreign Merchant Direct Investment In China

With the development of China's economy and the active promotion of a higher level of opening to the outside country with General Secretary Xi Jinping,and the continued promotion of trade and investment liberalization and facilitation,statistics from the Foreign investment Division of China's Ministry of Commerce(2018)show that China absorbed 131.04 billion U.S.dollars in 2017,an increase of 4% year-on-year,The actual use of foreign capital to achieve sustained and stable growth.Among them,2,066 foreign-invested enterprises were set up by M & amp;A,an increase of 39.2% on a year earlier and 14.57 billion US dollars in actual foreign investment.As of the end of December 2018,the country had set up about 900,000 foreign-invested enterprises,and the actual use of foreign capital accumulated about 1.9 trillion U.S.dollars.Compared with the backdrop of a 23% per cent decline in global international direct investment flows in 2017,China's foreign investment has bucked the trend and its performance has been impressive.However,in terms of regional distribution,in 2017,82.5% of the national FDI was concentrated in 11 provinces and cities in the east,and 20 provinces in the central and western regions used less than 20% of the country.The imbalance of the regional distribution of FDI in China has not changed,and it has become a hot issue affecting China's economic development.As Fisher(1999)put it,the value chain division of labour has deepened,and investment has replaced trade as the most important form of dependency for international division of Labor.China has also from the initial exclusion of foreign investment to the present continuous introduction of foreign capital,foreign investment has led to the development of China's foreign trade,Technology introduction and technological innovation,the promotion of talent introduction and personnel exchanges,but also brought advanced management experience,so foreign direct investment on a country's industrial structure adjustment and upgrading,Technological progress and the solidification of market structure play a vital role.For China,the continuous growth of the economy,partly due to the increasing FDI in China,China's actual use of foreign capital from 1983 to 916 million U.S.dollars to 131.04 billion U.S.dollars in 2017,an average annual growth rate of 16.28%.China,after the United States and Britain in the 2016,was the third largest country to absorb foreign capital,accounting for 7.66% of the world's total traffic.Foreign direct investment has the advantages of abundant capital,advanced technology and ahead of management concept,which is precisely integrated with China's abundant labor force and natural resources and huge consumer market,and has become the key driving force of China's economic growth.Especially since China's accession to the WTO in 2001,has won another major opportunity for reform and opening up,China has made extraordinary achievements in absorbing foreign capital.Although remarkable achievements have been made,we should also see that China has encountered some problems in attracting foreign investment,the foreign capital absorbed by our country is concentrated in the coastal areas of the eastern coast,the actual use of foreign capital in the eastern region in 2017 is 5.6935 trillion U.S.dollars,accounting for more than 82.5% of the actual use of foreign capital in the central region,accounted for 9.8%,the western region of the actual use of foreign capital of 532.8 billion U.S.dollars,accounted for 7.7%,the basic performance of the East as the center,the Midwest for the periphery of the distribution pattern.Large inflows of foreign capital into the eastern coastal areas.