Research on the FDI Inflows in Western Region of China - Exemplified by Guangxi Zhuang Autonomous Region

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.