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Talking about the impact of foreign direct investment on China's industrial structure and Countermeasures

Author: GuoNa From: www.yourpaper.net Posted: 2010-06-06 08:17:11 Read:
Paper Keywords: foreign direct investment in the industrial structure upgrade issues policy recommendations
Abstract: With the gradual deepening of China's reform and opening up, foreign direct investment have been expanding. Involved in the industry and the field has become increasingly widespread. Thus playing an increasingly important role in China's economic construction, China's industrial structure adjustment also had an impact, to some extent, promote the upgrading of industrial structure in China. However, due to the impact of policy and investment environment, FDI to China's industrial structure upgrade there are also adversely affected. This article gives some policy recommendations on the basis of the analysis of the pros and cons of.
Foreign Direct Investment (FDI). Means investors in a country's capital for the countries of production or business. And mastery of certain operational control of the investment behavior of FDI as an external resource. Promoting effect of the host country's economic growth depends on the internal structure of the industry in the country. Since China's opening to the outside world. Made a positive contribution of FDI to China's industrial structure optimization, but also inevitably bring some problems. So study the impact of FDI on China's industrial structure. Reasonable to invest in and guide foreign investment thus contributing to China's steady and rapid economic development has a very important significance
FI) I in the course of development in China with the status quo
FDI in China's development is divided into several stages. They are: the amount of the initial stage (1979 1986) Foreign Direct Investment in China. But on a steady rise. This is mainly due to the introduction of foreign investment in China focus on foreign borrowing. Indirect foreign investment, during which cumulative foreign direct investment projects in China by 7819. The average annual number of items 977.38: foreign direct investment in the contract amount of $ 19.159 billion, an annual average of $ 824 million. Steady development phase (1987 to 1991) With the rapid improvement of the environment, foreign direct investment in China has entered a period of steady development
1981 to 1991 FDI inflows rankings. China has surpassed Brazil among the developing countries, the host country 'during this period. Contract amount and the actual amount of foreign direct investment to maintain the increasing trend. Sustained and rapid development phase (1992 to 1996) since 1992, Deng Xiaoping's southern tour speech, foreign China began large-scale the systematic direct investment stage China's actual use of foreign capital amounted to $ 19.202 billion in 1992. Foreign borrowing and foreign direct investment for the first time to replace the actual amount of foreign direct investment exceeded $ 25 billion in 1993 to become the primary source of China's actual use of foreign capital. Exceeded $ 30 billion in 1994. Exceeded $ 35 billion in 1995. Reached $ 41.725 billion in 1996. Adjustment phase (1997-2001) at this stage. The introduction of foreign investment in our country is facing severe challenges, the sharp drop in inflows of foreign direct investment in China. One of the main reasons is subject to the impact of the 1997 Asian financial crisis: the capital of Europe and the United States are turning to a relatively higher expected return on investment, a new stage after the more developed countries of the insurance and outside the Asian region "dead" (2001-present) 2002 China's total actual foreign direct investment of $ 52.74 billion, for the first time surpassed the United States. Become the world's largest FDI absorption country. Currently, more than 400 Fortune 500 companies direct investment in China. In 1979, one in January 2007. The country approved a total of 597,797 foreign-invested enterprises. Contracted foreign investment of $ 1,434,992,000,000. The actual use of foreign capital of $ 697.072 billion. The status of foreign investment in China's national economy growing. Has become a force to be reckoned
Two, FI) I the positive role of China's industrial structure upgrade
Currently. China is entering a new stage of an industry restructuring and industrial upgrading. The end of the 1990s, with the shortage economy. Strengthen competition in the market, deep-seated industrial restructuring, industrial upgrading of foreign direct investment to promote the evolution of China's industrial structure to rationalization and sophisticated direction of China's opening to the outside world practice shows that. The use of foreign direct investment as an important part of China's opening up policy. Has played a positive role in promoting China's industrial restructuring and industrial development. Three fi) I in the impact of China's industrial structure upgrade problem
(A) expand the deviation of the industrial structure. Currently, foreign direct investment to China are concentrated in the secondary industry. Particularly in the industrial sector. The low proportion of investment in the tertiary industry, a small investment in the primary industry. Exacerbated by China's industrial structure is unreasonable. In the second within the industry. The one hand, foreign investment in small-scale, small risk of quick light industry and processing and assembly enterprises. Investment in heavy industry is relatively weak. Lead to the development of China's light and heavy industrial disharmony. Is not conducive to the expansion of the industrial structure upgrade space: On the other hand, foreign industry is highly concentrated in the manufacturing sector. In the manufacturing sector is mainly concentrated in the processing industry. To speed up the process of China's industrial structure of the high degree of processing. In the third industrial structure, the excess foreign flows to the commercial, real estate, finance and insurance industry and other industries with higher profits, less the flow of communication, transportation and other infrastructure sectors and science, education, culture and health departments. Changes in the proportion of output in these sectors also did not play a significant role in
(B) the formation of monopolies, reduce market efficiency. As China's introduction of the continuous expansion of the scale of foreign investment. Domestic market structural changes faster. The monopoly of foreign-invested enterprises began to appear in some industries. With the continuously push forward the reform of the domestic system, the institutional environment of China's market economy is taking shape. Foreign sole proprietorship in China environment improved significantly. Chinese investor no longer dependent on their cooperation in order to adapt to many of the characteristics of the traditional planned economy.
(C) bring pressure and resistance to the control of the market for the purpose of FDI on China's national industry. The development of the domestic industry would constitute suppression. Performance in foreign holding control. Pose a threat to our national industry. China's enterprises, especially state-owned enterprises and institutional obstacles increasingly difficult to adapt to the increased competition in the market environment. Thus subject to the exclusion of foreign capital. The final out of the market.
Fourth, improve FI) I
policy recommendations to speed up the upgrading of industrial structure in China
Introduction and utilization of FDI has a positive role in promoting China's economic development and industrial restructuring, but there are also some risks. So give full play to the active role of foreign direct investment at the same time. Must take the necessary measures to eliminate the adverse effects.
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