Study on the Existing Problems and Their Countermeasures of the FDI Utilization in Jiangsu

Jiangsu Province has convenient ocean, land and air transportation and great transportation capacity. There are 128 regular higher education institutions in Jiangsu, ranking the first by number in China. By the end of 2012, Jiangsu has a gross product of RMB5405.822 billion, accounting for 10.4% of the GDP of China as per Jiangsu Statistics Bureau (2013). According to the statistics of the National Bureau of Statistics of the People’s Republic of China (2013), in 2012 in China, Jiangsu Province’s economy ranked the second. With its advantages Jiangsu has attracted foreign direct investment (FDI) from all over the world. In 2012, there were 4156 contracted FDI projects. The contracted and the actually utilized FDI values reached US$57.14109 billion and US$35.75956 billion respectively. Not only has FDI brought capital, advanced technology, state-of-the-art management methods etc. for Jiangsu, but also it plays a very important role in Jiangsu’s economic development. However, in Jiangsu’s utilizing FDI some problems are existing, such as industries tending to be of the low end, imbalance in industry distribution, weak absorptive capacity of high technology, leading to environment pollution etc. This paper aims at analyzing the problems by SWOT method and puts forward some countermeasures for Jiangsu to develop its economy effectively by means of FDI.