The effect of FDI on economic growth in China

This paper mainly introduced the situation of FDI in china, analyzed the positive and negative effects of FDI on economy in china, hereby giving china government some suggestions on how to use FDI effectively. This paper is divided into three parts: the introduction of FDI's pattern and characteristics in China, theoretical analysis of the effects of FDI and some policy suggestions. Through that analysis, I think it is local managerial and technological capabilities that sustain the long-run economic growth. I also suggest that the Chinese government should transfer their emphasis from quantity to quality of FDI inflows and adopt a more selective, strategic policy to maximize the net profit through comparing the profits and cost from utilizing FDI.