FDI in China's Industry-Contributions to Growth and Technology Progress

FDI has carved an important niche for itself in the Chinese industry. These significant roles the FDI plays will be described and analyzed in detail in the paper based on empirical studies. A look will be taken at the fields in which the FDI has a key role to play. It can, among other things, provide new sources of capital, improve investment efficiency, increase productivity, enhance the nation's ability to introduce and develop advanced technology, and promote the quality of labor force. The conclusion is that FDI has not only become a dynamo behind the sustained growth of the Chinese economy,it is also changing the mode of economic growth in this country and improving its quality as well.