Impact:
Multinational companies account for a considerable proportion of global foreign direct investment, which affects the current changes of global foreign direct investment.
The investment measures of large multinational enterprises will bring "herd effect", and the choice of their investment places is like a banner, which guides the investment and transfer direction of enterprises in their industries.
Please refer to China. The international direct investment situation of com and the strategic adjustment of multinational corporations.
According to the World Investment Report 2004 published by the United Nations Conference on Trade and Development, in 2003, China surpassed the United States for the first time and became the country receiving the most foreign direct investment in the world.
According to the report, in 2003, the foreign direct investment (FDI) received by the United States dropped by 53%, from $63 billion in 2002 to $30 billion, the lowest level in recent years, ranking behind Luxemburg, China and Germany. Excluding the Luxemburg exception (FDI inflow of $87 billion and outflow of $96 billion), in 2003, China was the country that absorbed the most foreign direct investment in the world, with foreign direct investment reaching $53.5 billion, an increase of $800 million over 2002.
Jin Bosheng, director of the Foreign Investment Research Department of the Research Institute of the Ministry of Commerce, pointed out in an interview with this reporter that the steady growth of China's foreign direct investment mainly benefited from cheaper labor resources and a broader consumer market. These two basic factors for attracting foreign investment have not changed. Jin Bosheng said that with the gradual cancellation of China's requirements for foreign investment and joint ventures in terms of the proportion of foreign investment, localization, foreign exchange holdings and exports, more and more multinational companies have come to China to develop and realize localized production.
Jin Bosheng also pointed out that after China's accession to the World Trade Organization (WTO), foreign investors' confidence in China's investment has increased, and the scope of foreign investment has become broader under the background of gradually fulfilling its commitments to the WTO and further opening up various industries. In addition, China's economic development momentum is strong, and the high growth for several consecutive years has made global enterprises optimistic about China when looking for investment locations; In addition, in recent years, the world manufacturing group is in a new round of adjustment, and began to reposition China. In the tide of economic globalization, China has become an important link in the global industrial chain of multinational enterprises.
Hu Jingyan, director of the Foreign Investment Management Department of the Ministry of Commerce, pointed out that the form of international foreign direct investment mainly comes from transnational mergers and acquisitions, and the research on foreign mergers and acquisitions in China has been in its infancy since the implementation of the Interim Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors in April 2003. With the gradual improvement of policies and regulations and the establishment of system supporting measures, M&A will open a new door for China to continuously and effectively attract foreign direct investment.
According to the report of UNCTAD, in the future, manufacturing industry will still be the leading force to attract foreign direct investment in China. However, under the general trend that global foreign direct investment is gradually moving closer to service industry, the proportion of foreign investment absorbed by China's service industry will be greatly increased. James Zhan, an economist of this institution, said that although China's economic growth rate may slow down slightly in 2004, foreign investment in China is still on the rise.
In fact, the conclusions of the UNCTAD report are roughly the same as those of the Organization for Economic Cooperation and Development (OECD). As early as the beginning of July this year, the OECD reported in a report entitled Trends and Recent Developments of Foreign Direct Investment that in 2003, China surpassed the United States for the first time and became the country receiving the most foreign direct investment in the world. However, the figures released by the organization are somewhat different from those of UNCTAD: in 2003, China received $53 billion in foreign direct investment, while the United States received $39.9 billion.
Some foreign economists believe that there are three main reasons for the sharp decline in foreign direct investment in developed economies such as the United States: First, the global economic recovery was generally weak last year; Second, the market is worried about the international security situation; Third, many large companies focus on integrating the previous M&A business, thus delaying new transnational M&A activities.
In addition, UNCTAD's report also pointed out that global foreign direct investment has been declining for three consecutive years, falling to 560 billion US dollars in 2003, but it has shown a recovery trend since this year. Among them, in 2003, the foreign direct investment absorbed by developed countries dropped sharply by 25% to only $367 billion, while the foreign direct investment absorbed by developing countries increased by 9% last year, reaching $654.38+07.2 billion. The foreign direct investment in the Asia-Pacific region rose from 94 billion dollars in 2002 to 65,438+0,070 dollars. Strong economic growth and good investment environment are the two main reasons.
1, the benefits of foreign direct investment
The positive impact of foreign direct investment on China's economic growth mainly includes six aspects: 1, increasing domestic investment and promoting capital formation; 2. Absorb the labor force for employment; 3. Improve the total factor productivity; Comprehensive factor productivity; 4. Promote the upgrading of industrial structure in China; 5. Expand the scale of China's foreign trade, improve China's foreign trade structure and promote the development of foreign trade; 6. It is an important source of tax revenue in China. First of all, the direct effect of a large amount of FDI inflow is to increase the capital stock of China and effectively make up for the double gap between savings and foreign exchange proposed by Chenery and others. As of 1999, the actual inflow of FDI into China accounts for 17% of China's total fixed assets investment, and this capital formation effect is more obvious if domestic supporting investment is considered; From the quantitative analysis of the relationship between domestic investment and FDI, we can clearly see that FDI has played a significant role in increasing domestic investment and promoting capital formation at the level of 95%. Secondly, foreign-invested enterprises have absorbed a large number of labor employment in China. According to relevant statistics, during the period of 1.990- 1.999, 5.65 million new employees were employed in the foreign-funded economy, which eased the employment pressure in China, directly or indirectly promoted the transfer of rural surplus labor to non-agricultural industries and promoted China's economic growth. Thirdly, foreign direct investment has improved China's comprehensive factor productivity. From the research results of He Jie and Shen Kunrong, it can be seen that FDI has indeed improved the comprehensive factor productivity of China as a whole (although the latter analysis will talk about the damage of foreign-funded enterprises to China in conservative advanced technology). This is mainly because foreign direct investment is a package of creative investment. With the transfer of funds, ideas, research and development, technology, management, marketing and market networks will also be transferred to recipient countries. Fourthly, as mentioned in the second part of this paper, from the industrial structure of China's utilization of foreign direct investment, foreign direct investment is mainly concentrated in the secondary industry. In 2000, 72.75% of foreign direct investment projects and 73.72% of contracted foreign investment in China were concentrated in the secondary industry. By the end of 2000, 72.99% of foreign direct investment projects were utilized in China, and 60.87% of contracted foreign investment was concentrated in the secondary industry. Judging from the industrial structure of utilizing foreign direct investment in China, FDI is mainly concentrated in manufacturing. Judging from the changing characteristics of China's industrial structure after the reform and opening-up, the proportion of the output value of the primary industry has increased during the period of 1978- 1983. In other years, the proportion of the output value of the primary industry has decreased year by year, and the proportion of the output value of the secondary industry and the tertiary industry has been increasing. Therefore, the influx of foreign capital into the secondary and tertiary industries is an important factor to promote the transformation of China's industrial structure. At the same time, the advanced production technology and management technology accompanied by foreign direct investment, as well as its diffusion effect and demonstration effect, promoted the technological progress and relative improvement of labor productivity of domestic foreign-funded industries, and indirectly promoted the transformation of industrial structure. Fifth, the import and export ratio of foreign direct investment enterprises is much higher than that of other domestic enterprises. According to customs statistics, the total import and export volume of foreign-invested enterprises in 1745. 1 1 in 1999 accounted for 48.39% of China's total import and export volume, of which imports accounted for 53.5% and exports for 44.0%, which effectively promoted the expansion of China's foreign trade import and export scale. The contribution of foreign direct investment enterprises to optimizing China's trade structure is mainly manifested in enabling China to enjoy the benefits of global division of labor, promoting exports and upgrading the structure of import and export commodities. During the period of 1998, the proportion of manufactured goods imported and exported in China was 83.59% and 88.79% respectively, and the proportion of manufactured goods imported and exported by foreign-funded enterprises was 90.70% and 94. 18% respectively, both higher than the domestic average. Finally, foreign direct investment enterprises have also increased considerable tax revenue for China.
2. Disadvantages of foreign direct investment
Because foreign investors are mainly optimistic about China's huge market and cheap labor, the most fundamental motive is to pursue profit maximization. Foreign direct investment inevitably has a negative impact on China's economic growth, and with China's accession to the WTO, the influx of large multinational companies and the gradual liberalization of mergers and acquisitions, this negative impact has become more and more obvious, and we have to attach great importance to it.
First of all, as mentioned in the second part of this paper, since the 1990s, more and more foreign direct investment has adopted the sole proprietorship mode, and foreign investors in Sino-foreign joint ventures have also actively controlled the equity of enterprises in various ways. On the one hand, with the continuous advancement of domestic system reform, China's market economy system environment is taking shape, and the environment for foreign investors to operate solely in China has obviously improved, so foreign investors no longer rely on China investors to cooperate with them to adapt to many characteristics of the traditional planned economy; On the other hand, in order to keep its technical secrets to maintain its competitive advantage. The more important attempt of foreign investors to adopt sole proprietorship is to control China's industries and monopolize the market. According to statistics, from 65438 to 0997, foreign businessmen have occupied more than 30% of the market share in electronic and communication equipment manufacturing, clothing and leather fur and down manufacturing, cultural and educational sporting goods manufacturing, food manufacturing and other industries. Secondly, since the 1990s, foreign investors have invested in factories to acquire more state-owned enterprises and brands, and started to acquire state-owned enterprises in a decentralized and random way, purposefully and planned to acquire large and medium-sized state-owned enterprises with good benefits or to acquire key enterprises in the same industry in different regions. As the third part of this paper analyzes, if foreign direct investment does not appear in the form of newly established enterprises, but in the form of equity replacement or privatization of state-owned enterprises, then this kind of investment will not improve the production capacity of the host country.
Thirdly, foreign-invested enterprises often strictly control the diffusion of their technology, especially high and new technology, and the purpose of exchanging market for technology in China has not been well realized. Over the years, China voluntarily gave up market share in exchange for second-rate and third-rate technology. Although China, as a developing country, should consider choosing appropriate technology to attract more workers, if China is always in a backward position in technology, especially in strategically important industries, China will not be able to compete with foreign countries, and it will also endanger the industrial security of China and even the economic security of the whole country. Finally, many foreign direct investments transfer enterprises whose home products have been eliminated or seriously polluted to China, which has brought great harm to the sustainable development of China's economy.
Verb (abbreviation for verb) short conclusion
Through the above empirical analysis, we know that foreign direct investment has made remarkable contributions in promoting capital formation, absorbing employment and improving China's comprehensive factor productivity. At the same time, in our regression analysis of economic growth rate and foreign direct investment, we can clearly see that foreign direct investment has significantly promoted the economic growth of China as a whole. From our further analysis of the positive impact of FDI, we can also see that FDI has directly or indirectly promoted China's economic growth by upgrading China's industrial structure, expanding foreign trade, optimizing the structure of import and export commodities, and paying taxes. However, as mentioned many times above, with China's accession to the WTO and the gradual liberalization of restrictions on foreign investment, there has been a new trend of foreign direct investment enterprises aiming at maximizing profits, purposefully and planned to control China's industries, monopolize the market and block advanced technologies. Therefore, this paper holds that China should pay enough attention to it while actively attracting foreign investment and creating a good investment environment for foreign investors.
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