Research On Changes Of Sino-American Two-Way Investment In Subdivided Manufacturing Industries And Its Influencing Factors

China has achieved net capital outflows under two-way investment for three consecutive years since 2015.China’s "Made in China 2025" and American "Manufacturing Reshoring" have intensified the competition to seize the commanding height of the development in manufacturing industries between these two countries.Along with being an important part of economic interaction,Sino-American two-way investment in manufacturing industries has changed a lot in subdivided level.Due to current data availability and the complexity about Sino-American subdivided manufacturing industries,present researches on two-way investment are limited and most of them focus on the macro dimension instead of a thorough analysis on subdivided industries.Based on the classification criteria of manufacturing industries subdivision in China and the United States,this paper matches and chooses 256 samples from 8 subdivided manufacturing industries including Information and Communication Technology(ICT),Transportation Equipment Manufacturing(TEM)and so on from 2001 to 2016 of China and America,aiming at analyzing the influencing factors on changes of Sino-American two-way investment in subdivided manufacturing industries by using a two-way fixed effect model.On this basis,the cross-terms of different factors and industry dummy variable are introduced into the model in turn,and we analyze the different effects they make on different subdivided manufacturing industries empirically.The results show that:on the one hand,there is a significant positive correlation between Sino-American two-way investment in subdivided manufacturing industries.The concentration of China’s subdivided manufacturing industries is significantly negatively correlated with China’s direct investment in the United States,while the openness of American subdivided manufacturing industries and its direct investment to China are significantly positively correlated.On the other hand,the impact of various factors on Sino-American two-way investment in manufacturing industries has subdivided heterogeneity.Firstly,the two-way investment interaction is most prominent in the Chemicals,Metals and Basic Materials(CMBM),Consumer Products(CP)and Transportation Equipment Manufacturing(TEM).Secondly,the market size and technological innovation level of American subdivided manufacturing industries significantly affect China’s direct investment to American subdivided manufacturing industries.Among them,the level of technological innovation in Chemicals,Metals and Basic Materials(CMBM)is positively affecting China’s direct investment in the American industries,which has opposite direction of influence on other industries.Lastly,this paper also found that there is a significant relationship between the concentration of China’s subdivided manufacturing industries and the direct investment from America to China ’s subdivided manufacturing industries.In addition to Consumer Products(CP)and Information and Communication Technology(ICT),the labor cost of China ’s subdivided manufacturing industries is proportional to the size of outward direct investment from America to China.At last,by combining results of empirical research and the development reality of manufacturing industries of China and America,this paper points out:Firstly,there is a certain positive interaction between inward and outward foreign direct investment of a country,this result provides better empirical basis of subdivided industries for the two-way investment coordination mechanism between China and the United States.Secondly,contrary to the general research conclusions,the level of technological innovation of most American subdivided industries is inversely proportional to the scale of the IFDI from China.These results indicate that the United States has a high degree of control over foreign investors in the areas involving key technologies compared with China,and the corresponding review guidelines are opaque,weakening the technical pursuit of China’s enterprises’ direct investment in the American subdivided manufacturing industries.Therefore,during the process of trade negotiations and bilateral investment agreements negotiating,China and the United States should take reduction of investment barriers in American subdivided industries such as information and communication technology into the key issues so as to enhance the mutual trust,so that these two countries can develop direct investment on a fair and open basis of the subdivided industries.Thirdly,in terms of direct investment in subdivided manufacturing industries from China to America,the high concentration of the domestic market has weakened the competitive advantage of China ’s enterprises’ "going out".Therefore,we should accelerate the reform of state-owned enterprises and improve the efficiency of domestic market-oriented resource allocation.