The large scale of foreign direct investment which has entered into Chinese markets, could improve the economic development of eastern coastal areas through accelerating the formation and centralization of capital, Technology Overflows, upgrading of the industrials structure and the human capital formation. On the contrary, the fast speed of the economic development of eastern parts would also increase the earning of the local residents, enlarging the demand of the market, improving the Total Factor Productivity, promoting the external environment and reducing costs, which could possibly bring into being a cluster economic effect, accordingly, there would be more foreign direct investment entry into the market. From all the industrials, the most distinct industrial is the high-tech industrial, which has recently influenced Chinese economic development the most. In this proposal, we will write about how the FDI brought an impact into the Chinese economy, which would mainly focus on the high-tech industries, and give the result and some suggestions after the particular analysis.
(Since the beginning of the far-reaching economic reforms of 1978, China's economy has been growing at a breakneck pace of 9.5 percent a year1. ...Show more