Let s discuss the impact of foreign investment on China s social economy

Jobs are created, new ideas and technologies are brought with them.

Answer]: Foreign direct investment has played a positive role in achieving rapid economic growth in China, which is mainly reflected in the following aspects:

1) FDI participates in domestic capital formation, and foreign-invested enterprises have become an increasingly important output**;

2) Foreign direct investment drives foreign trade exports and economic growth;

3) FDI promotes the improvement of the technical level and the upgrading of the industrial structure, and the improvement of the quality of economic growth;

4) Foreign direct investment has exerted spillover effects, and advanced production systems, management methods and operating mechanisms, as well as employee training, have played an exemplary role for Chinese enterprises, thereby improving factor productivity.

What is the impact of foreign direct investment on our economyThe positive impact of foreign direct investment on China's economic growth mainly includes six aspects:

1. Increase domestic investment and promote capital formation;

2. Absorb labor employment;

3. Improve TFP of comprehensive factor productivity;

4. Promote the upgrading of China's industrial structure;

5. Expand the scale of China's foreign trade, improve the structure of China's foreign trade, and promote the development of foreign trade;

6. It is an important tax collection in China.

Disadvantages of FDI.

Since foreign investment in China is mainly optimistic about China's huge market and cheap labor, and maximizing profits is its most fundamental motive, foreign direct investment will inevitably have a negative impact on China's economic growth, and with China's accession to the WTO, the influx of large multinational corporations, and the gradual liberalization of mergers and acquisitions, this negative impact has become more and more obvious, and we cannot but attach great importance to it.

With the development of reform and opening up, the scale of foreign direct investment in China has been expanding. In 1983, China's actual use of foreign direct investment was only 100 million US dollars, in 1990 it was 100 million US dollars, and in 2002 it reached 100 million US dollars, an increase of 82 times over 1983, and the actual use of foreign capital jumped to the first place in the world for the first time. This shows that after China opened its long-closed door, the accumulated investment desire abroad was sharply released in a period of time.

The influx of foreign direct investment in a relatively short period of time has not only brought about a strong reputation for production capacity, but also brought about a relatively large share of the international market. Some of these market shares already existed, and only production capacity was transferred. The other part is that with the development of foreign-invested enterprises, international capital has been further acquired in the world market by relying on its strong market development capabilities.

All of these market shares will be difficult to achieve in a short period of time if they rely solely on domestic factors. The rapid growth of foreign direct investment has greatly promoted China's economic development. In 2002, China's actual use of foreign capital as a percentage of GDP rose from 2001.

The foreign-invested enterprises that have been established in the country are generally operating well, and the growth rate of their major economic indicators, such as industrial added value, export value, tax revenue, and surplus value of bank foreign exchange settlement and sales, is higher than the national average, and their proportion in the total national economy, especially in the increase in the national economy, has continued to increase, and their role in promoting the sustained, rapid, and healthy development of the national economy has been markedly enhanced.

1. FDI has promoted the development of China's industry.

1. The proportion of the industrial output value of foreign-invested enterprises in the total industrial output value of the country has been increasing.

As can be seen from Table 1, since 1990, the industrial output value of foreign-invested enterprises has grown rapidly, and its proportion in the country's total industrial output value (calculated at comparable prices, the same below) has been increasing. From 1991 to 2002, the average annual growth rate of FDI industrial output value reached 100 percent; With the exception of 2001, the growth rate in the remaining years was higher than the growth rate of gross industrial output. In 1990, FDI accounted for only a share of the country's total industrial output, and by 2002 it had reached the same value.

The rapid growth of the industrial output value of foreign-invested enterprises and the increasing proportion of their total industrial output value in the country have promoted the development of China's industry.

2. Promote industrial restructuring and industrial upgrading.

In recent years, the structure of FDI has become more and more prominent in favor of the manufacturing industry. In 2002, there were 31,063 newly registered foreign-invested enterprises in China, some of which were located in the manufacturing industry. As can be seen from the data in Table 2, since 1999, the proportion of foreign direct investment actually absorbed by China's manufacturing industry has been increasing year by year.

From 1999 to 2002, the total amount of foreign direct investment actually used in China's manufacturing industry was US$100 million; The average annual growth rate since 2000 has reached. Among them, in 2002, the actual use of foreign direct investment in China's manufacturing industry was 36.8 billion US dollars, accounting for the total actual use of foreign direct investment.

Topic: Foreign investment in China is mainly concentrated in ().

a.Manufacturing.

b.Agriculture. c.Services.

d.Education, scientific research.

Answer: c.

According to foreign investment data released by the Ministry of Commerce on December 17, real foreign direct investment (FDI) fell from January to July this year, and fell in July. This is the 10th consecutive year of negative FDI growth and the largest decline since July.

From January to July this year, China's actual use of foreign capital was 100 million US dollars, a year-on-year decline. There were 12,264 newly approved foreign-invested enterprises nationwide, a year-on-year decrease.

In July, the actual use of foreign capital was 100 million US dollars, a year-on-year decline. There were 1,845 newly approved foreign-invested enterprises, a year-on-year decrease. However, China has been a country with large FDI inflows compared to other countries.

At present, global foreign direct investment is declining, and China's decline is relatively small.

Problems arising from the upgrading of China's industrial structure.

1) Expanding the deviation of industrial structure. At present, foreign direct investment in China is concentrated in the secondary industry, especially in the industrial sector, and the proportion of investment in the tertiary industry is on the low side, and the scale of investment in the primary industry is very small, which has aggravated the irrationality of China's industrial structure. In the secondary industry, on the one hand, foreign capital mainly invests in light industry and general processing and assembly enterprises that are small in scale, quick in effect, and low in risk, and the investment in heavy industry is relatively weak, resulting in the uncoordinated development of China's light and heavy industry, which is not conducive to the expansion of the space for upgrading the industrial structure.

On the other hand, foreign industry is highly concentrated in the manufacturing sector. In the manufacturing industry, it is mainly concentrated in the processing industry, which has accelerated the process of high-processing of China's industrial structure. In the structure of the tertiary industry, foreign capital flows excessively to industries with relatively high profits, such as commerce, real estate, and finance, insurance, and so on, while it flows to infrastructure sectors such as communications and transportation, and to science, education, culture, and public health sectors.

2) Forming a monopoly and reducing market efficiency. With the continuous expansion of the scale of foreign investment introduced in China and the acceleration of changes in the structure of the domestic market, the monopoly phenomenon of foreign-invested enterprises has begun to manifest itself in some industries. With the continuous advancement of domestic structural reform, China's market economy institutional environment is taking shape.

The environment for wholly foreign-owned businesses in China has improved markedly, and they no longer rely on Chinese investors to cooperate with them in order to adapt to many of the characteristics of the traditional planned economy.

3) Bringing pressure and resistance to China's national industry, FDI for the purpose of market control will constitute a side of inhibition to the development of domestic related industries, which is manifested in the fact that foreign investors control the market, which poses a threat to China's national industry. China's enterprises, especially a large number of state-owned enterprises, are becoming more and more difficult to adapt to the market environment of intensified competition due to institutional obstacles, and as a result, they have been squeezed out by foreign capital. Eventually exit the market.

1. In the process of competition between domestic enterprises and foreign-funded enterprises, after experiencing a certain period of difficulties, with the timely adjustment of domestic and foreign investment policies and the cultivation of a fair competition environment for domestic and foreign-funded enterprises, domestic enterprises in some industries have grown up in the competition, and the vitality and competitiveness of enterprises are gradually rising, but the growth of Chinese enterprises still has a long way to go;

2. Due to the implementation of the integrated business strategy of multinational corporations and the limitation of the supporting capacity of domestic enterprises, a large number of FDIs have entered but failed to effectively drive the development of domestic related industries. But in terms of trends, there are already signs of improvement.

The structural risks of introducing foreign capital are obvious, mainly including: financial risks, industrial and market structure risks, resource and environmental risks, and economic incoordination risks. exacerbating the imbalance in the structure of the domestic economy; a certain degree of crowding out effect on the domestic economy; First, it has exacerbated the problem of external imbalances in China's economy.

The impact of foreign direct investment on China's economic development:

According to foreign investment data released by the Ministry of Commerce on 17 December 2009, actual foreign direct investment (FDI) fell year-on-year from January to July this year, and fell in July. This is the 10th consecutive month of negative year-on-year growth in FDI, and in July, it recorded the largest decline this year.

From January to July this year, China's actual use of foreign capital amounted to 100 million US dollars, a year-on-year decline, and 12,264 newly approved foreign-invested enterprises in the country decreased year-on-year.

In July, the actual use of foreign capital was 100 million US dollars, a year-on-year decline, and the number of newly approved foreign-invested enterprises in the country was 1,845, a year-on-year decline. However, compared with other countries, China has always been a country with a large share of FDI inflows, and at present, FDI is declining around the world, and China's decline is relatively small.

The positive impact of foreign direct investment on China's economic growth mainly includes six aspects:

1. Increase domestic investment.

and promoting capital formation;

2. Absorb labor employment;

3. Improve TFP of comprehensive factor productivity;

4. Promote the upgrading of China's industrial structure;

5. Expand the scale of China's foreign trade, improve the structure of China's foreign trade, and promote the development of foreign trade;

6. It is an important tax in our country.

The most direct effect of the large FDI inflow is to increase China's capital stock, effectively making up for the double gap between savings and foreign exchange proposed by Chinnery and others. As of 1999, FDI actually flowed into China accounted for 17% of China's total fixed asset investment, if we consider domestic supporting investment.