Analysis On The Influence Of Regular Epidemic Prevention And Control Measures On Foreign Direct Investment In China

Since China’s reform and opening up,much Foreign Direct Investment(FDI)has been entered into China,resulting in the rapid development of society and economy.However,the outbreak of COVID-19 epidemic in 2020 and worldwide spread have severely hit the economy of all countries.At the same time,it also has a significant on the international investment,leading to the rapid decline of China’s foreign direct investment.Although the epidemic condition in our country has been basically controlled,the spread of epidemic in foreign countries remained continuously.COVID-19 epidemic has been officially identified as "global pandemic" by WHO,and there remains a great uncertainty about the ease period of global epidemic.Faced with the risk and uncertainty of foreign epidemic input,the prevention and control work of epidemic require to persist for a long period because of human being’s insufficient understanding for COVID-19 epidemic.At this background,we have to face and adapt to such a reality that entering the stage of normalized epidemic prevention and control.In this stage,some previous "extraordinary measures" are gradually canceled,while some necessary prevention and control measures are still remained,such as port control measures,prevention of personnel aggregation.These measures directly affect the flow of funds and personnel,which are harmful to foreign direct investment.Therefore,in order to optimize the utilization of foreign direct investment,it is important to analyze the impact of normalized epidemic prevention and control on investment,reveal its conduction path and clarify the relationship between influencing channel and investment.In view of this,the paper will deeply analyze the influencing efficiency and influencing path of normalized epidemic prevention and control on China’s foreign direct investment,the accordingly propose the relevant countermeasures and suggestions,which can provide decision-making reference for promoting the optimal utilization of foreign direct investment.Initially,this thesis deeply analyzes the current situation and characteristics of China’s foreign direct investment from five aspects: overall scale,investment source,investment subject,regional structure and industrial structure.Meanwhile,this thesis analyzes three characteristics of normalized epidemic prevention and control.On this basis,the influencing path of the normalized epidemic prevention and control on foreign direct investment was explored from three perspective of investment environment,financial market and supply chain.Also,by building the measurement model,this paper utilizes monthly data in the period of 2009 and 2021 to empirically analyze the influencing effect of normalized epidemic prevention and control on China’s foreign direct investment.Finally,countermeasures and suggestions are proposed to provide theoretical and empirical support for promoting the optimal use of foreign direct investment.Based on the above research,we find that the scale of China’s foreign direct investment remains the trend of growth,and the tertiary industry acts as the main force for attracting foreign investment.At the same time,the ability of attracting foreign investment in diversified regions shows heterogeneity,and the ability of attracting foreign investment in eastern regions is stronger than that in western regions.The normalized epidemic prevention and control is to take low-level and targeted prevention and control under the consideration of real risks,and it has three characteristics: initiative,long-term effect and routine;Because of these characteristics,China has well controlled the epidemic.It has a positive impact on China’s investment environment,financial market and supply chain.The empirical results show that the improvement of investment environment,financial market and supply chain has a significant positive impact on China’s foreign direct investment.As a result,in the context of normalized epidemic prevention and control,in order to enhance the optional use of foreign direct investment in China,we should continually optimize the foreign investment environment,continuously expand enterprise financing channels,effectively improve the modernization of supply chain.