FDI in China

Abstract

In this paper, I collected different FDI(foreign direct investment) theories from Hymer, Kindleberger, Aliber etc. According to the theories, we understand the determinants of FDI, and how they affect it.By analysis the data, there is a clear picture of how Chinese FDI developed. And following that I have chosen four main determinants to analysis further, and the policy determinant played a really important role in Chinese FDI development. Due to the open-door policy, China has been attracting a lot of foreign investors. However while Chinese economy is developing, some divestment also appeared and being discussed.