Abstract
Since China gained the membership into WTO, the huge market potentiality and the improved investment environment combined together contributed significantly to the economic development of China. Yet FDI (Foreign Direct Investment) is not allotted equally in different regions of China. Compared with the inward FDI in the eastern and mid regions of China, the western region has attracted less FDI. FDI is fuelling much of the rapid economic leap of the developed regions of China and the significant inequity grow further, for the reason that these inflows of investment in western regions are, however, limited in the total volume and concentrated both by country of origin, industries and regions. Taking Guangxi Zhuang Autonomous Region as an example, the author concludes that the FDI policies of western region are no longer producing optimal results. The government should formulate corresponding measures to attract FDI inflows, meanwhile adjust the regional structure of FDI so as to further spur the economy development.
Highlights
It is of little doubt that FDI (Foreign Direct Investment) has contributed significantly to Chinese economic development, and much and perhaps most of the growth of China’s exports can be attributed to foreign-invested enterprises
Guangxi is world renowned for its scenic spots and historic culture, well- endowed with many natural resources, and most importantly, it is the usual and appropriate route of the business connections between China and 10 ASEAN countries
FDI inflows of Guangxi Zhuang Autonomous Region is largely engaged in export-intensive manufacturing by performing labor-intensive operations on imported goods for re-export as OEM alleged loudly, it is not well integrated into mainstream of Chinese economy
Summary
It is of little doubt that FDI (Foreign Direct Investment) has contributed significantly to Chinese economic development, and much and perhaps most of the growth of China’s exports can be attributed to foreign-invested enterprises. In the total western FDI inflows of 2010, Sichuan topped the list of all the western provinces and took the proportion of 37.4%, followed by Chongqing 29.1%, Shanxi 10.1%, and Guangxi 8.4%. FDI inflows of Guangxi Zhuang Autonomous Region is largely engaged in export-intensive manufacturing by performing labor-intensive operations on imported goods for re-export as OEM alleged loudly, it is not well integrated into mainstream of Chinese economy. Based on the statistical data of various sources, this study portrays the inward FDI flows of Guangxi Zhuang Autonomous Region from the perspectives of poor FDI volume, over-concentration of FDI affiliates, the lack of industries zoning and funding sectors, the mal-allotment of recipient regions, the non-diversified modes of FDI inflows etc. The first section of the study encompasses an introduction to the FDI inflows in Guangxi Zhuang Autonomous Region of China. Section Four sketches some reflections about the concrete actions to further the FDI attraction yet tailed to the local economy development agenda
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