China surpassed the United States to become the world's largest foreign investor.
First, the role of foreign capital in promoting China's economic development.
1. The domestic employment contradiction is hanging. For labor-intensive and non-technical capital-intensive industries, finding cheap labor is the core issue of saving costs and improving profits. China has a large population, and the average labor price is lower than that of western countries. Therefore, world-renowned brand enterprises will consider the position of this factor in enterprise expansion planning when setting up multinational branches. Enterprises that rely heavily on labor force may tend to set up factories in China to take advantage of the cheap labor force in China and reduce costs. At the same time, foreign direct investment in setting up factories has also brought benefits to China-increasing domestic jobs, solving the re-employment problem of some unemployed people in time, and alleviating the chaos caused by the current heavy employment pressure, thus ensuring social stability.
2. Produce a "technology spillover" effect. Technology spillover refers to the by-products of foreign direct investment in the production and operation activities of the host country, including process spillover and human resource flow effect. This is determined by the special nature of technical knowledge itself, which is similar to public goods, that is, non-competitiveness and diversification exclusiveness. With the rapid development of science and technology, it is the development trend of most developing countries to improve the technological level of domestic enterprises by using the technology spillover effect of foreign direct investment, and it is also one of the important bases of China's investment policy of "market for technology". Whether there will be spillover effect mainly depends on two aspects: first, investors of multinational companies.
Type, the second is the learning and innovation ability of host country enterprises. Vertical investment is the main channel of technology spillover, and foreign investors use the principle of comparative advantage to arrange production processes reasonably among countries. In the it-led production chain, the import of intermediate products will increase. Through continuous learning and exploration, national enterprises are familiar with competition rules, strengthen innovation, widely apply and spread the positive role of intermediate technology, promote the completion of final products and expand the export of finished products, thus narrowing the gap with foreign companies and gradually competing with them. This is the so-called "learning by doing" effect.
3. Emerging industries are developing rapidly. Gradually in China.
In the process of integrating into the world market, the development projects and programs brought by foreign capital also promote the rise of domestic emerging industries and provide a broad space for their development. Emerging industries mainly refer to high-tech industries and modern service industries, and the Yangtze River Delta and Pearl River Delta, which are particularly favored by foreign businessmen, have developed the fastest. In recent years, there have been outstanding innovations in the financial field, among which financial engineering is the representative of emerging products. After China's entry into WTO, it has realized its commitment to gradually open its market, and a large number of foreign banks have entered, bringing brand-new financial concepts and financial products, providing more convenient services for domestic residents and occupying a part of the market share. In order to avoid being eliminated in the fierce competition, our domestic counterparts have also begun to introduce and
The self-development of emerging financial products promotes the rise and development of financial engineering. At the same time, the proportion of new projects jointly developed by China and foreign countries has increased. This model provides a platform for frequent exchanges between domestic personnel and foreign technicians, and the opportunities for learning and learning increase, further promoting the spillover effect.
Second, the disadvantages of introducing foreign capital to China's economic development
1. Domestic resources are seriously wasted and the ecology is unbalanced. China is rich in natural resources, which is an important factor to attract foreign investors, but the domestic market of final products has not formed as expected. Foreign investors' vertical investment is mostly processing, which makes China's trade evolve into the form of processing trade, that is to say, China's production line is just a processing chain. Foreign businessmen spend China's resources for unrestrained production and development, and the final products can be sold in large quantities in the vast market of China, which not only avoids the resource consumption and environmental pollution brought by domestic production, but also gains a lot of profits, which can be described as killing two birds with one stone. China, on the other hand, has achieved so-called development at the cost of a lot of environmental damage, which is the development of serving outsiders and the most unfavorable development. In addition, foreign direct investment supports a large number of exports, export trade continues to increase, and resources exist in the importing country in kind. This outflow effect not only reduces the opportunities for China residents and enterprises to use resources, but also facilitates the development of importing countries, wastes resources and poses a competitive threat to economic development.
2. Deviation of economic development model. In the 1980s and 1990s, some Latin American countries embarked on the road of export-oriented opening, relying on cheap labor and providing preferential policies to attract a large amount of foreign investment, which led to the out-of-control scale of foreign investment, unbalanced capital inflow and outflow and excessive dependence on foreign investment. The entry of foreign capital has indeed made the GDP of Latin American countries grow rapidly in a short period of time. However, when the global industrial trends changed and multinational corporations withdrew their investments and went to other countries, these countries quickly experienced economic recession and turmoil, which never recovered for a long time. The so-called Latin American countries are not unique to this phenomenon of Latin American beautification, and realize short-term phased rather than long-term high-speed development at the expense of their own economies. Because China enterprises rely on foreign technology, their independent innovation ability is not strong, and they are in a passive position, exporting domestic high-tech products.
Our support ability is very low. Therefore, under the condition that the technology spillover effect is not obvious and the dependence on foreign capital is serious, China has two completely different attitudes: "external economic worship" and "internal economic discrimination". Take Guangdong as an example. On the one hand, the development of exogenous economic regions rapidly promotes GDP growth, on the other hand, it is difficult for endogenous economic entities to share the "dividends" brought about by GDP growth and prosperity. In addition, because the supervision of foreign capital introduction is not standardized, some unscrupulous foreign businessmen speculate under the guise of investment, which seriously affects the normal development of China's economy. Especially in recent years, the international community expects the RMB to appreciate strongly, and a large amount of capital flows into China, including "hot money". These hot money will flee quickly after the appreciation of RMB, which will not only reduce the income of China's economy, but also aggravate instability.
Qualitative. This deviated pattern will lead to abnormal economic development, and there are hidden contradictions and crises.
3. Lead to the strange circle of "rich but not rich". China has been high recently! "# The growth rate is developing rapidly and the economic situation is colorful. Therefore, despite the global economic downturn, China, which has maintained rapid economic growth, is regarded as the creator of the myth. This is partly due to the promotion of foreign direct investment to economic growth. Foreign investment has brought economic prosperity, but the GNI level of China has not achieved rapid development in synchronization with GDP. In other words, with China's high GDP, the income of residents has not reached the same level of affluence. This is a "strange circle" of China's economic development. Why is this happening? First of all, we must understand that the accounting of GDP includes the social wealth created by foreign-funded enterprises that have been operated and developed for a long time in a country. And China is more.
A high level of GDP is largely achieved by foreign capital. While the good operating efficiency of foreign-funded enterprises drives GDP growth, a large number of profits formed by development are also occupied by foreign investors. In this case, the gross national income naturally does not increase in step with GDP, and GNI is less than the wealth created by economic development, which leads to the strange phenomenon that China is rich and poor and people's living standards are improved.
Sorry, econometrics won't start until next year. The data is too early, it's from 2003, otherwise,