The impact of FDI on international trade, the impact of FDI on China s economy

FDI stands for Foreign Direct Investment. After economic globalization, the introduction of a large number of FDI has accelerated the rapid development of China's economy, and at the same time, a large proportion of China's GDP is the indirect citation of FDI.

First, foreign direct investment is an effective improvement in China's balance of payments.

Second, it has increased the opportunities and guarantees for employment in our country, improved the employment environment, and improved the quality of the labor force.

Third, it has promoted the upgrading of China's industrial structure.

Fourth, international investment has produced the first development effect, mainly for sweater alternative investment.

Like Japan, China is a country with a very high savings rate and a considerable amount of capital, but it is a rather surprising fact that China has absorbed 10 times the FDI in the 26 years since its reform and opening up, which is not only 10 times that of Japan in the 50 years since the end of World War II, but has also surpassed the United States, which has a pitifully low savings rate. In addition to proving China's astonishing waste of capital, this also proves the fact that China's rising FDI is a political choice, an irrational economic choice made by an irrational system (although it is a rational choice for the interests of the bureaucracy).

The irony is that this political choice has only produced some FDI data that can be bluffed and flaunted, and the price we pay for it is a net loss of national welfare. Since it is the choice of the system, as long as the system remains unchanged, it will be difficult to turn back from this kind of competition strategy until it reaches the point where it cannot be tolerated. After studying the economic plans of some places, the introduction of foreign capital has generally been raised to the height of the lifeline of economic development.

In the reform period, to strive for projects, investment, has always been the primary agenda of local economic development, after the mid-90s, FDI for this traditional way of thinking opened up another shortcut. If the former leads to a huge waste of investment, the latter opens the door to the export of wealth. The most successful absorption of FDI in China is Suzhou.

Imports and exports.

According to a World Bank release, foreign direct investment (FDI) inflows into China will fall by about 20 percent in 2009 to $130 billion, accounting for about 1 10 percent of the global total and 1 3 percent of foreign investment in developing countries. The World Bank** will have a total global FDI volume of about one trillion dollars this year, of which $385 billion will go to developing countries. In fact, China has remained the largest recipient of foreign investment for 17 consecutive years.

Foreign Direct Investment (FDI).

It is also known as international direct investment and cross-border direct investment.

International direct investment refers to the export of capital by investors with the main purpose of controlling part of the property rights of enterprises, directly participating in operation and management, and obtaining profits. International direct investment can take two forms: the creation of a new business and the control of equity in a foreign enterprise. The establishment of a new enterprise refers to the direct investment of investors abroad, the establishment of new factories and mines or subsidiaries and branches, and the acquisition of existing foreign enterprises or companies to engage in production and business activities.

Controlling foreign equity refers to the purchase of a foreign enterprise** and reaching a certain percentage, so as to have control of the foreign enterprise.

The latest form of international direct investment is the reinvestment of profits, in which an investor uses some or all of the profits obtained through direct investment to invest in the original enterprise. This form of direct investment, with the deepening of international investment, has increasingly become an important form of direct investment.