Analysis and Mechanism Research on The Effect of Foreign Capital Withdrawal on Chinese Enterprise Environment

Abstract

In recent years, problems such as the "exodus of foreign investment" and the decoupling of China and the United States have been widely reported. What impact will the "withdrawal of foreign investment" have on the environmental performance of Chinese companies? On the basis of analyzing the environmental performance of enterprises with foreign investment, it is of great practical significance to study this problem for the green development of Chinese economy and high quality investment. This paper expounds the influence of foreign investment withdrawal on pollution emission of Chinese enterprises from multiple perspectives, and explores the mechanism of foreign investment withdrawal on pollution emission of enterprises through theoretical analysis. The final conclusion is that foreign enterprises bring advanced technology and experience to local enterprises, and their withdrawal will aggravate pollution and cause negative environmental impact. This paper also provides feasible suggestions for the government to formulate environmental protection policies in response to the withdrawal of foreign investment.