Negative impact of FDI on our country 60

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.

Summary. <>

Hello, dear, very happy to your question, why does China actively attract foreign investment on the one hand, and accelerate foreign direct investment on the other? Because China's economy has continued to grow at a high rate for many years, it has abundant capital accumulation in China, and it naturally needs to flow to overseas markets to obtain greater benefits. In a sense, China's transition from simply introducing foreign capital in the early days of reform and opening up to now attaching equal importance to foreign investment is an important sign that China's economy is moving towards a higher stage.

Hope mine can help you. Wishing you good health and a happy mood!

Why is China actively attracting foreign investment on the one hand, and accelerating its outward direct investment on the other?

Hello, dear, very happy to your question, why does China actively attract foreign investment on the one hand, and accelerate foreign direct investment on the other? Because China's economy has continued to grow rapidly for many years, so that the country has abundant capital accumulation, it naturally needs to flow to overseas markets to return to the market to obtain greater benefits. In a sense, China's transition from the simple introduction of foreign capital in the early stage of reform and opening up to the current introduction of foreign capital and foreign investment is an important sign that China's economy is moving to a higher stage.

Hope mine can help you. Wishing you good health and a happy mood!

In recent years, the endogenous driving force of China's economy has been continuously strengthened, and the role of external factors, including foreign investment, in promoting China's economy has weakened, but this does not mean that external factors are not important. On the contrary, by expanding the introduction of foreign investment and building a higher-level open economic system, it is indispensable for China to accelerate the formation of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other.

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Legal framework for foreign investmentLaws and regulations on foreign-invested enterprises mainly include the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures, and the Law of the People's Republic of China on Foreign-Funded Enterprises, as well as their implementation rules. For foreign-invested limited liability companies, the Company Law of the People's Republic of China shall apply, and where there are other provisions in addition to the above-mentioned laws, those provisions shall apply. The signing of the contract between Chinese and foreign parties is subject to the Contract Law of the People's Republic of China.

In addition, for the establishment, operation, termination and liquidation of foreign-invested enterprises, China has also formulated a series of laws, regulations, regulations, measures, etc., forming a relatively complete set of laws and regulations, and China has signed agreements with relevant countries to encourage and mutual protection of investment and avoidance of double taxation, effectively protecting the legitimate rights and interests of domestic and foreign investors.

Is it better to use FDI as much as possible?

Dear Hello <>

Thank you for your patience, I am honored to be able to answer for you, the use of foreign direct investment is the more cover fingers and ruin the better is not complete, now on the project, the biggest difficulty is the lack of funds, make full use of foreign capital can not only learn foreign advanced technology and management methods, but also an effective way to solve financial difficulties. China's use of foreign capital is divided into two forms, namely: absorbing foreign direct investment and borrowing foreign loans.

Pro-FDI is mainly divided into Sino-foreign joint ventures, Sino-foreign joint ventures, wholly foreign-owned enterprises, and cooperative development. As well as including compensation**, processing with supplied materials, processing and assembly, etc. 1Sino-Japanese joint venturesSino-foreign joint ventures are also known as equity-based joint ventures.

It is that Chinese and foreign parties jointly invest, operate, share risks, and share profits and losses according to their respective investment ratios. In general, the proportion of foreign investors' capital contribution shall not be less than 25%.

The legal framework for foreign investment in oranges, the laws and regulations of foreign-invested enterprises mainly include the Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Joint Ventures, and the Law of the People's Republic of China on Foreign-funded Enterprises, as well as their implementation rules. For foreign-invested limited liability companies, the Company Law of the People's Republic of China shall apply, and where there are other provisions in addition to the above-mentioned laws, those provisions shall apply. The signing of the contract between Chinese and foreign parties is subject to the Contract Law of the People's Republic of China.

In addition, for the establishment, operation, termination and liquidation of foreign-invested enterprises, China has also formulated a series of laws, regulations, regulations, measures, etc., forming a relatively complete set of laws and regulations.

Dear Hello <>In response to your question "Is it better to use more foreign direct investment?" to answer the following question: Of course, the more foreign capital is not the better.

According to relevant data, China's foreign-funded industries are becoming more and more reasonable, the proportion of inflows into the "two highs and one capital" industry is declining, and the shareholding system of foreign investment has increased year-on-year. In 2010, China's use of foreign capital broke through 100 million US dollars for the first time, the second in the world, and the role of capital in promoting China's economic development is undeniable. However, with the rapid development of China's economy, the shortage of domestic funds has been alleviated, and with the transformation of domestic economic driving factors from exports to domestic demand, the role of foreign capital in replenishing funds and promoting economic growth has been further weakened.

The various preferential policies implemented in the early days to fill the funding gap have exposed many drawbacks, and the unlimited large-scale entry of foreign capital has had a series of negative impacts on China's economy. If the direction of foreign investment is unreasonable, it will aggravate the imbalance in China's industrial structure and regional structure. The regional distribution is unreasonable, which is mainly reflected in the fact that the eastern part is too heavy and the central and western regions are too light.

In terms of industry, according to the statistics of the Ministry of Commerce, the use of foreign investment in agriculture is less than half of that of manufacturing. Although the service sector is growing, it is still low and high in the manufacturing sector. The influx of foreign capital has increased the pressure on China to maintain the balance of payments, overheated the economy, and increased the pressure of inflation.

The first-class pattern dominated by foreign-funded enterprises is an important force for the high growth of China's foreign trade surplus, which also makes China always at the center of global friction.