Analysis on the Development Process and Economic Impact of China’s Foreign Direct Investment
Main Article Content
Keywords
foreign direct investment, development stage, economic impact, China
Abstract
Since the founding of the new China, especially since the reform and opening up, the development of China’s foreign direct investment has opportunities but also faces challenges. Based on previous studies, this paper summarizes and analyzes China’s foreign direct investment into six stages: blank, exploration, start, adjustment, rapid development and comprehensive development, and analyzes its economic impact. In the phased development process of China’s foreign direct investment, it is also affected by multiple factors at home and abroad, showing the characteristics of wave evolution and periodic fluctuation. At the same time, China’s foreign direct investment has a positive economic impact on itself, the host country and even the world from the micro level to the macro level. In the future, China’s foreign direct investment should move towards a higher quality and level with the joint efforts of the government, enterprises, the market and society.
References
- [1] Jin, Q. H. and Wang, K. Q. Outward foreign direct investment, digital finance and green technological innovation. Statistics and Decision. 2025, 41(19), pp. 134-139. https://doi.org/10.13546/j.cnki.tjyjc.2025.19.023.
- [2] Wang, Y. Q., Du, J. L. and Wang, K. The determinants of location choices of China’s ODI: Institutions, taxations and resources. Economic Research Journal. 2014, 49(12), pp. 126-142.
- [3] Gao, P. F., Xin, L. and Sun, W. L. Chinese OFDI in 70 years: Development course, theoretical logic and policy system. The Theory and Practice of Finance and Economics. 2019, 40(5), pp. 2-10. https://doi.org/10.16339/j.cnki.hdxbcjb.2019.05.022.
- [4] Yang, B. and Ke, J. M. The review and prospect of China’s foreign investment in past 70 years since country foundation. World Economy Studies. 2019, 40(5), pp. 2-10. https://doi.org/10.13516/j.cnki.wes.2019.09.001.
- [5] Dou, J. m. and Xue, Z. International Economic Cooperation. Beijing: Machinery Industry Press, 2016.
- [6] Cui, Y. M. and Wang, J. Inducing or extruding: The impact of China’s OFDI on other countries’ OFDI: Taking OECD countries’ direct investment in countries along the “Belt and Road” as an example. West Forum. 2022, 32(5), pp. 63-82. https://doi.org/10.3969/j.issn.1674-8131.2022.05.005.
- [7] Zhao, W., Gu, G. D. and He, Y. Q. Outward FDI and China’s technological progress: Mechanism analysis and tentative empirical evidence. Management World 2006(7), pp. 53-60. https://doi.org/10.19744/j.cnki.11-1235/f.2006.07.007.
- [8] Bai, J. H. and Liu, Y. Y. Can outward foreign direct investment improve the resource misallocation of China. China Industrial Economics. 2018(1), pp. 60-78. https://doi.org/10.19581/j.cnki.ciejournal.20180115.002.
- [9] Ji, L. and Mou, J. The moderating role of host investment environments on the relationship between enterprises’ OFDI and green innovation: evidence from China. Sustainability. 2023, 15(2), p. 891. https://doi.org/10.3390/su15020891.
- [10] Gao, C., Cao, M., Wen, Y. and Xu, J. China’s outward foreign direct investment and bilateral trade potential: a theoretical and empirical study. Mathematical Problems in Engineering. 2022, 2022(1), p. 5448359. https://doi.org/10.1155/2022/5448359.
- [11] Mao, Q. L. and Xu, J. Y. Does Chinese companies’ outward direct investment promote corporate innovation? The Journal of World Economy. 2014, 37(8), pp. 98-125. https://doi.org/10.19985/j.cnki.cassjwe.2014.08.006.
