Direct Investment by Transnational Corporations and Intra-industry Trade in China——An Empirical Analysis of Intra-industry Trade in China

With the continued expansion in trade,intra——industry trade has grown in importance in China's foreign trade,and direct investment by transnational corporations has become an important impetus to intra-industry trade in China.Therefore,it is necessary to stress and classify the boosting effect on China's trade competitiveness of intra-industry trade created by different kinds of direct investment.Actively absorbing horizontal investment by transnational corporations can promote the shift in intra-industry trade between China and developed countries from vertical trade to horizontal trade,and fully utilize the technological spillover effect of transnational corporations,thus facilitating technological progress and industrial upgrading in related domestic industries and enhancing China's trade competitiveness.