The scale of making use of the foreign capital has been expanding with a rather high speed from 2 billion US dollars in 1970s to 105.74 billion US dollars in 2010. Besides, along with the development of the reform and opening up, the ways we make use of the foreign capital varies from borrowing money from the other countries at the beginning of the reform and opening up to various methods: foreign direct investment, issuing international bonds, transnational merge and acquisitions.
Additionally, the quality of investment project increases day by day. In the past, the average amount of investment project was about 200 thousands US dollars, but now, the amount goes up to 2-3 billion US dollars. And about 480 of the top 500 corporations in the world have invested in China with more capital intensive and technology intensive projects turning up.毕业论文
http://www.751com.cn/The structure of foreign investment is more rational. The investment used to focus on the labor intensive fields and hotel industry. Now, the hi-tech industry, modern manufacturing industry, modern service industry, insurance and banking draw more attention of the foreign capital. On the other hand, in the past, more than 80% of the foreign capital was invested into the eastern coastal developed regions, but now the western region becomes to the new hot spot.
Nowadays, the foreign capital plays a more and more significant role in some industries of China, and contributes more and more to the growth of GDP , import and export. The foreign capital not only provides the money, but also promotes the technology in China, brings advanced managerial experience to China and increases the employment and develops China’s market economic system.原文请+QQ324.9114 辣'文,论.文'网
2 A Brief History of Foreign Capital Investing in China
Since the reform and opening up policy was carried out, the amount of the foreign capital entering China has been keeping an increasing momentum, but different from period to period.
Before 1992, although the foreign investment maintained a constant growth with total amount of 23.4 billion US dollars, it affected China’s economy little. In this period, the main foreign capital we could make use of was from the mid-sized enterprises of Hong Kong, Macao and Taiwan. And the main attractions to the foreign capital were the preferential policies towards the foreign investment and the location advantage of the opening up coastal cities.
From 1992- 1995, the foreign investment in China grew at a high speed, with the amount increasing from 11 billion US dollars in 1992 to 37.5 billion US dollars in 1995, which made China become the most attractive country for foreign capital. In this period, the big increase of foreign investment attributed to the establishment of socialistic market economic system, which gave foreign investors a promising future, and more preferential policies by the local government to attract more foreign investment.
After the two years’ growth of 1996 and 1997, from 1998 to 2000, the increase of foreign investment met a standstill and even a decrease in 1999 by 5 billion US dollars. In this period, the foreign capital in actual use decreased from 45.5 billion US dollars in 1998 to 40.7 billion US dollars in 2000, with a decrease of 10.5%. The main reason was the reorganization of the foreign capital since 1996, which decreased the quantity but increased the quality of using foreign capital with the entry of multinational corporations. But after 1998, because of the Asian crisis and the policy changing of the crisis countries, the multinational corporations took advantages of the shrinkage of property in these countries and merged a lot of local enterprises. At the same time, the policies of China towards foreign capital didn’t take adjustment in time.
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