THE IMPACT OF DIRECT FOREIGN INVESTMENT ON THE DEVELOPMENT OF ECONOMY IN CHINA

Abstract

The article analyzed the structure of inflow and outflow of direct foreign investment in China during the last decade. The author shows specific features and trends of investment cooperation with key economic partners and Chinese jurisdictions (Hong Kong, Taiwan). The sectoral principle of distributing the flow of direct foreign investment was discussed, which is used for raising and export of foreign capital in industries and service sector to safeguard interests of national security of China economy. The article pointed out to the impact of M & A deals as an alternative to investment projects from the ‘green field’ on Chinese economy growth. It identifies problems connected with disproportion in the development of industrial sector and service sector of the western and central parts of the country and seaside regions. The author demonstrates the key factors and trends in the active expansion policy of Chinese capital on foreign markets at the current stage.

Keywords

• direct freeing investment
• foreign investor
• m & a deals
• projects from the ‘green field’
• the course of reforms and openness
• off-shore zone
• national security