Prospects and Analysis of FDI in China
摘要
Since China's opening and reform began, China has attracted a large inflow of foreign direct investment (FDI). This is largely due to the stable development of the economy, preferential policies, rich resources, cheap labor, and bright market prospects. The amount of FDI actually used by China in 2004 reached US$60.63 billion, maintaining the growth momentum that started in 2000, ranking China as second in the world. FDI's positions in industrial production, in industrial structure upgrade, and in import/export have been strengthened The technical level has continued to rise and the number of R&D centers set up in China has been increasing. The increasing role of FDI in China's economy has aroused growing concern from all quarters. 2004 was a year that witnessed the most extensive discussion among economists and other circles on the advantages and disadvantages of FDI in China. Is the amount of FDI too much? Have foreign-funded enterprises introduced advanced technologies ? Have they produced an overflowing effect? Is there a monopoly on the domestic market by foreign capital? And does it affect economic stability and national security? ( Guo Hong, 2004)