Since the late 1970s, China has chosen the correct road of opening to the outside world. For 30 years. China has made great achievements in opening to the outside world. Foreign trade has become an important pillar of China's economic development; The scale of attracting foreign direct investment continues to expand; Foreign direct investment has developed. However, with the development of domestic economy and the change of international economic environment, China's opening-up strategy needs ten major adjustments, which are mainly manifested in the trade strategy of limited people with prizes, the capital strategy of limited people with prizes and the pursuit of foreign exchange reserve preference. On the basis of reviewing the course and present situation of China's opening to the outside world, this paper emphatically analyzes the challenges faced by China's opening-up strategy, so as to explore the adjustment direction of China's opening-up strategy.

First, the historical choice of China's strategic road to opening to the outside world

(A) the theoretical approach of developing countries' opening-up strategy

The main ways of international economic ties are international trade and international direct investment. Therefore, the opening-up strategy of developing countries is also a strategic choice in these two aspects.

1, foreign trade strategy of import substitution and export promotion

Foreign trade is the engine of economic growth. This road expounded by classical economics and confirmed by the historical experience of developed countries is still applicable to the economic development of developing countries. This is not only because foreign trade can expand the total output and export of developing countries, but also because foreign trade can exchange capital goods and intermediate products needed for economic development, which provides necessary conditions for developing countries to implement industrialization, change traditional economic structure, improve output and income levels and realize economic development. The foreign trade strategies of developing countries mainly include import substitution strategy and export promotion strategy.

Theoretically, the import substitution strategy can reduce imports and reduce economic dependence on foreign countries; Saving foreign exchange and balancing international payments; Develop domestic infant industries and realize industrialization; Develop the production and export of finished products; Increase employment in industrial sectors, change the dual economic structure, and so on. It can be seen that the foothold of this strategy is to eliminate the obstacles for developing countries to develop their own economy on the one hand, and to eliminate the influence of unfavorable terms of trade on developing countries on the other hand, so as to create favorable conditions for industrialization and economic development. Theoretically, the export promotion strategy can take advantage of superior natural conditions or cheap labor to develop labor-intensive and technologically advanced products and promote the overall economic growth by expanding exports; The expansion of exports will help to increase employment opportunities, increase per capita income, and promote the strengthening of industrial base and industrialization process; The expansion of exports will help to improve the domestic technical level and labor productivity and promote the upgrading of industrial structure; Because of the export promotion industry and the manufactured goods industry, expanding exports is conducive to improving the terms of trade and achieving the balance of payments. As far as the goal is concerned, the implementation of export promotion strategy is to achieve comprehensive industrialization and rapid economic growth and overcome a series of problems brought about by imported substitute industries.

2. International capital flow strategy of introducing foreign capital and foreign investment.

Domestic resources in developing countries are insufficient, and economic development is heavily dependent on external resources. Therefore, it is necessary to obtain resources from outside by introducing foreign capital and using foreign aid. The inflow of foreign resources can solve the problems of insufficient savings, shortage of foreign exchange and scarcity of capital goods in a country, and introduce advanced technology and management methods, thus promoting economic development. The main advantages of introducing foreign capital are: it may help developing countries fill the savings gap and solve the balance of payments deficit; Obtain special goods and services urgently needed by domestic production from abroad; Obtain technologies and new production methods that can improve domestic labor productivity from abroad, so as to enhance domestic ability to improve output level; Make up for the shortage of domestic technology, management and enterprise talents, and so on.

After developing to a certain stage, developing countries should carry out foreign direct investment in a timely manner, because: through foreign direct investment, they can further explore domestic and foreign markets and promote domestic exports; Using the global factor price difference to enhance the competitiveness of domestic economy; Promote the upgrading and optimization of domestic economic structure.

(B) the realistic choice of China's opening-up strategy

Under the traditional socialist economic conditions before the reform and opening up, China's foreign economy was basically closed. At the beginning of reform and opening up, China's economy had three obvious characteristics: first, there was a shortage of funds and foreign exchange, and economic development was restricted by a serious shortage of funds; Second, the employment pressure is great, the per capita national income is very low, and the economic development is restricted by the lack of domestic market; Third, domestic resources are relatively cheap, such as labor resources and land resources. These three characteristics of China's economy at that time determined that the basic strategic choice of China's foreign economy at that time was: in terms of trade, implementing export promotion strategy; In the direction of capital flow, the strategy of introducing foreign capital is implemented.

Although 1978, the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China put forward reform and opening up, before the reform and opening up 10, China's foreign economy actually developed slowly. It was not until 1992 that Comrade Xiaoping made a speech on his southern tour, especially after the 14th National Congress of the Communist Party of China, that China's foreign economy began to develop rapidly, and the international trade and international capital flow in the balance of payments began to improve on a large scale. This strategy of opening to the outside world began to be popularized on a large scale in 1992 and reached its climax in 1997. Because during the period of 1997, China's economy encountered two challenges, one was the Asian financial crisis, which first manifested itself in international speculation on foreign exchange. It seems that only countries with rich foreign exchange reserves can prevent this crisis, so the opening-up strategy and the winner-take-all capital strategy, which are conducive to the increase of foreign exchange reserves, are more respected. The other is that for the first time since the reform and opening-up, China's macroeconomic demand is insufficient, resulting in weak economic growth and a large increase in the number of unemployed people. Although we tried to stimulate consumption demand and investment demand at that time, that is, we tried to stimulate it through active fiscal policy and expansionary monetary policy, for various reasons at that time, except for government investment promoted by active fiscal policy, other measures seemed to be slow to take effect, so we later increased the intensity of international policy to start demand. That is, by expanding imports and actively introducing foreign capital, domestic demand has been started. Later, it was precisely because of these measures to expand exports and actively introduce foreign capital that by developing and occupying the international market, the pressure of serious shortage of domestic demand was released, which made up for the shortage of domestic market demand and effectively promoted economic growth, thus achieving great results in starting the economy. 200 1, China's accession to the World Trade Organization marks a new stage of China's opening up. On the one hand, other WTO members joined the WTO through China, promising that China will enjoy the basic rights of WTO members. At the same time, this commitment is more about China's commitment to all WTO members. Generally speaking, at this stage, our opening up has taken a big step.

Second, the main achievements of China's opening-up strategy

(A) Foreign trade has become an important engine of China's economic growth.

Since 1978, China's foreign trade has made great achievements. 1978, China's total import and export of goods was only $20.6 billion, and in 2007, the total import and export was $2173.7 billion, which was 3 times higher than 1978, with an average annual growth of 17.4%. Among them, export growth 18. 1%, import growth 16.7%. The total volume of China's import and export trade rose from 29th in the world at 1978 to 3rd in 2007, and its proportion in the total world trade also rose from 0.8% to 7.7%. At the same time, the international competitiveness of China's foreign trade has been significantly enhanced. The proportion of manufactured goods exports to total exports increased from 49.7% in 1980 to 94.9% in 2007. The proportion of primary products, mainly food and agricultural and sideline products, in total exports decreased from 50.3% in 1980 to 5. 1% in 2007. At the same time, the import of mechanical and electrical products and high-tech products increased rapidly, while the import of primary products declined. The dependence on foreign trade is constantly increasing. The proportion of total import and export trade in GDP increased from 9.7% in 1978 to 66.8% in 2007, an increase of 57. 1 percentage point. China has become a veritable foreign trade power. Judging from the dependence on trade, China has a very high degree of integration into the global economy. Since the reform and opening up, China's annual total import and export volume and foreign trade dependence are shown in figure 1.

Since the reform and opening up, China has attracted far more foreign direct investment, so China has gained a surplus under the capital account year by year. From Figure 4, we can intuitively see that from 1993, the annual surplus of direct investment in capital projects began to exceed $20 billion, reaching $56 1 billion in 2007.

(3) Accumulated huge foreign exchange reserves.

As mentioned above, since the reform and opening up, China has accumulated a large amount of trade surplus under the trade account and a large amount of capital account surplus under the capital account. The double surplus of trade and capital account constitutes the main source of China's foreign exchange reserves, which makes China's foreign exchange reserves increase rapidly. Before 1978, foreign exchange reserves never exceeded 1000 billion US dollars. Until 1983, China's foreign exchange reserves were only 890 million. The huge foreign exchange reserves have enhanced China's comprehensive national strength, international payment ability and anti-risk ability.

(4) A brief evaluation of China's opening-up strategy.

The main feature of China's current strategic framework for opening to the outside world is that we have adopted the general policy of actively expanding exports and restricting imports in international trade. For example, going abroad has implemented a tax rebate policy that is conducive to expanding exports, implemented a stricter import tariff policy on imports, and even refused to import; Under the capital account, we have implemented policies to attract foreign investment and limit capital outflow, such as various preferential policies including tax incentives and land incentives for foreign investment, but strictly control capital outflow. In line with this opening-up strategy, China's foreign exchange system implements an administrative system strictly controlled by the state. Not only is the flow of foreign exchange strictly controlled, for example, foreign exchange under capital account is never liberalized, but the price of foreign exchange is also controlled by the government, and the government pricing principle is implemented. Therefore, the flow and pricing of foreign exchange are not free and market-oriented. This opening strategy is characterized by the trade strategy of rewarding and restricting entry, the capital strategy of rewarding and restricting entry, and the pursuit of foreign exchange reserve preference.

This strategy of opening to the outside world has created a trade surplus very quickly, and caused a large amount of foreign capital to flow into China, thus effectively increasing China's foreign exchange reserves, and at the same time creating more employment opportunities for China and increasing people's income. Of course, this strategy has also greatly promoted the reform in China, and formed the institutional change effect of opening-up driving reform. This strategic choice of China's foreign economy was correct at that time, which was in line with China's national conditions at that time, and we should not blame it. However, with the development of domestic economy and world economy, this strategy needs to be adjusted.

Third, the current challenges facing China's opening-up strategy

(1) The high dependence on foreign trade makes the domestic economy more vulnerable to the risks of international economic fluctuations and fluctuations in the international trade environment, which increases the uncertainty of economic growth and makes it difficult to maintain balanced growth.

In the past 30 years, China has implemented this foreign economic development strategy based on expanding exports, which makes the contribution of the "troika" (that is, investment, consumption and export) driving China's economic growth in turn: export, investment and consumption. In other words, China's economic growth is export-driven. Judging from the international economic fluctuations, at present, due to the impact of the subprime mortgage crisis, the economic growth of the United States has slowed down significantly, and the economies of Europe and Japan have also been greatly affected. The overall slowdown of economic growth in developed countries has basically become a situation, and its negative impact on the global economy will gradually emerge. Especially those countries that are highly dependent on the American economy, the export situation may become more severe. It has been predicted that if the US economy slows down by 1 percentage point, the world economy may slow down by about 0.5 percentage point, and China economy may slow down by 0.2-0.3 percentage point. Maybe this prediction is a bit overdone, but at least it reminds us. If the developed countries such as the United States are depressed, the impact on China's exports will definitely be considerable. In recent years, there is a strong positive correlation between the export growth of China and the economic growth of the United States. Roughly speaking, if the GDP growth rate of the United States decreases by 1 percentage point, the growth rate of the ten countries in China will decrease by about 5 percentage points. Therefore, if the US economy slows down obviously, it will have a more obvious impact on the stability of China's exports and even economic growth. Judging from the fluctuation of the international trade environment, China's products are subject to anti-dumping by trading partners, with more varieties and wider scope. According to the statistics of the Ministry of Commerce, by the end of May 2007, 34 countries and regions had initiated 637 anti-dumping, countervailing, safeguard measures and special safeguard investigations on China's export products. Among them, there were 573 anti-dumping investigations, 2 countervailing investigations, 5 1 safeguard investigations and1special safeguard investigations, involving more than 4,000 kinds of commodities, affecting China's export trade by about 654.38+0.86 billion US dollars. In 2003, 19 countries and regions filed 59 anti-dumping, safeguard measures and special safeguard cases against China, involving about US$ 2.2 billion, with the number of departments involved increasing by 178% compared with 2002. Judging from the number and amount involved, the countries and regions that implement anti-dumping against China products are the United States and the European Union. In 2003 alone, the United States filed 1 1 anti-dumping cases against China products, involving 185 billion US dollars, accounting for 84. 1% of the total amount involved. Although the total amount of products subject to anti-dumping in China only accounts for 1% of the total export, the number of products subject to anti-dumping has increased nonlinearly in recent years. There is reason to believe that China has become the biggest victim of trade remedy measures in the world.

(2) The huge foreign exchange reserves not only have huge opportunity costs, but also increase the foreign exchange holdings of the central bank, aggravate the excess domestic liquidity and have a strong impact on the domestic economy.

Although the huge foreign exchange reserves have enhanced China's comprehensive national strength, international payment ability and anti-risk ability, the opportunity cost of holding such huge foreign exchange reserves is huge. Due to the inflexibility of RMB exchange rate mechanism, the money supply has surged. Excess floating land, in turn, stimulates investment, leads to overheating of the domestic economy, contributes to the distortion of the domestic economic structure, and greatly increases the pressure of rising prices. First of all, from the perspective of opportunity cost, without considering the overseas direct investment of surplus countries, the benefits brought by the current account gap to surplus countries are: the yield of US Treasury bonds x surplus; Its opportunity cost: domestic investment profit rate x surplus. Since the investment profit rate of developing countries is usually higher than the yield of US Treasury bonds, their current account surplus generally means the reduction of their national welfare. From the perspective of balance of payments, if a developing country is an attractive country, it should become a current account deficit country. Double surplus means that developing China countries exchange high-return equity with developed countries for low-return creditor's rights. Unless the ownership of foreign capital is closely related to the introduction of technology, the failure of FDI to be converted into the corresponding current account deficit (trade deficit) will lead to the reduction of national welfare compared with the successful conversion of FDI into the corresponding trade deficit. The double surplus will inevitably lead to an increase in foreign exchange reserves, which represent a country's subsidy to the United States. More foreign exchange reserves mean more subsidies to the United States, while subsidies to foreign countries naturally represent the loss of domestic welfare. In short, from the perspective of optimal allocation of resources, developing countries should not usually pursue current account surplus. As Rudy Enbush, a famous economist, said: "For a poor country, it is certainly irrational to spend resources not on domestic investment to improve productivity and living standards, but on buying US Treasury bonds." If a developing country is an attractive country, it should turn the capital inflow into a corresponding current account deficit (trade deficit). At the same time, with the depreciation of the dollar, our foreign exchange reserves will also depreciate sharply.

Secondly, judging from the impact on the domestic economy, this strategy leads to a serious imbalance in China's international payments, and too much foreign exchange flows into China, which makes the central bank's foreign exchange currency issue too large. 1993-2006 M2 supply and foreign exchange in China are shown in Figure 6. It can be intuitively seen from Figure 6 that during the sample period, with the increase of foreign exchange holdings, the M2 supply in China increased significantly.

According to relevant data, we calculate the proportion of foreign exchange in M2 supply, as shown in Figure 7. It can be intuitively observed from Figure 7 that the proportion of M2 foreign exchange in the sample period was only 2.5 1% in 1993, exceeded 10% in 1995, exceeded 20% in 2004 and reached 28.64% in 2006. Its economic significance lies in that about 1/3 of the broad money supply in 2006 came from foreign exchange. Excessive foreign exchange accounts for too much money supply, resulting in excess liquidity, making the prices of consumer goods, investment goods and assets rise in an all-round way, causing serious imbalance in the domestic economy, and increasing the pressure of inflation, overheating and economic bubble.

(3) Attracting foreign direct investment far exceeds foreign direct investment, which will bring certain hidden dangers to the future balance of payments.

In the face of the influx of FDI, China may be caught in the embarrassing situation of paying for investment income in the future (Yu Yongding, 1997, 2003). For example, if the stock of foreign capital (FDI) in China is US$ 500 billion and its return on investment is 10%, investors can repatriate their profits or reinvest them. Remitting profits back to China means that foreign capital will remit 50 billion US dollars. In this way, in the current account investment income, China is negative. In order to maintain the current account balance, China should have a corresponding trade surplus of $50 billion every year to make up for the deficit of investment income items. The reinvestment of profits indicates that the stock of foreign capital in China will increase at the rate of 10%, which means that foreign investors will remit more profits in the future. At present, China's economy is in a period of rapid growth, and the income from FDI is very high, which means that there is a big deficit in the investment income in China's balance of payments. But ... this is not reflected in China's balance of payments statistics. In the past, foreign investors always claimed that their rate of return in China was very low, and they invested in China because they were optimistic about the investment prospects in China. That was not the case. According to a survey by economists of the World Bank, the return on investment of foreign-funded enterprises in China is as high as 22% (it seems that China economists have not reached such a conclusion). As foreign direct investment will continue to flow into China, China's investment income deficit may increase rapidly in the next five years. If China's trade surplus does not increase rapidly, China will have a current account deficit. Of course. If we make good use of foreign capital and improve labor productivity rapidly, China has the ability to offset the deficit of investment income projects by increasing the trade surplus, but it is a big question whether the international environment allows us to do so. In addition, if China's foreign investment increases rapidly and the rate of return is high, China's investment income deficit can also be avoided. However, due to the small scale of China's foreign direct investment, it seems impossible to offset the remittance of China's foreign investment income with China's foreign investment income in the future to cope with the possible investment income deficit income.

In addition, if we say that in the more than 20 years from the reform and opening up to the end of last century, an important task of China's opening up to the outside world was to solve the problem of insufficient funds faced by the upgrading of urban large industries and the transfer of rural labor force, however, this problem no longer exists. According to the Report on the Implementation of Monetary Policy in China in the Second Quarter of 2008 issued by the People's Bank of China, according to the statistics of the State Administration of Foreign Exchange, as of June 2008, the difference between RMB deposits and loans of financial institutions in China has exceeded 13.4 trillion yuan, and as of September 2008, the foreign exchange reserves have reached1905.585 billion US dollars. Considering the funds deposited by financial institutions and huge foreign exchange reserves, we need to pursue the maximization of the utilization efficiency and economic benefits of these funds.

Based on the above analysis, this open strategy, which consists of a trade strategy to limit the number of winners, a capital strategy to limit the number of winners and a preference for foreign exchange reserves, is not a mutually beneficial and win-win open strategy.

Fourth, the future adjustment direction of China's opening-up strategy.

(1) Taking the balance of international payments as the strategic goal of opening up in the future.

Pursuing foreign exchange reserve preference is an important feature of China's opening-up strategy. The pursuit of foreign exchange reserves is also the pursuit of balance of payments surplus, which is influenced by the mercantilist concept of wealth in a certain sense. Mercantilism holds that wealth is money, that is, gold and silver. The standard to measure a country's wealth and development is how much money it has, and the fundamental driving force to promote a country's development is to accumulate money. Therefore, the only way to increase national wealth is to develop foreign trade, that is, to sell China's surplus products to other countries for money, or to earn profits in the form of money through entrepot trade. The development strategy advocated by mercantilism is to reward and restrict people's foreign trade. The early mercantilism advocated the use of administrative means to prohibit the export of money, and to sell more and buy less to accumulate money in foreign trade, that is, to achieve the purpose of accumulation by regulating the movement of money. Late mercantilism allowed currency exporting countries to buy more foreign goods, but it was necessary to keep the output of goods exceeding the input, that is, to achieve the purpose of accumulation by adjusting the movement of goods.

However, the main sign of modern economic growth is the growth of gross national product. Under the condition of open economy, it is an important way to promote a country's economic growth to make full use of two kinds of resources and two markets at home and abroad and allocate resources more rationally on a global scale. Compared with the domestic market, domestic and foreign markets promote growth by expanding aggregate demand, while domestic and foreign resources promote growth by expanding aggregate supply.

Theoretically speaking, in an open economy, the balance of international payments (external balance of payments) together with economic growth, full employment and price stability constitute the macroeconomic goals of modern governments. It can be seen that the balance of payments is an important part of the national economic balance. The imbalance of international payments will inevitably have an important impact on the balanced development of the national economy. Therefore, it is necessary to adjust the balance and imbalance of international payments to promote the stability and sustainable development of the national economy. This is why the modern government's macroeconomic policies often regard the balance of payments as an important goal to coordinate the economic balance at home and abroad. From a practical point of view, China's economic development practice has verified the correctness of this theoretical explanation and prediction. Since the reform and opening up, China's export-oriented and externally-dependent opening-up strategy has promoted China's economic development, but the imbalance of international payments it brings not only has a strong impact on the current domestic economy, but also brings hidden dangers to the future international payments. With the changes of domestic economy and international economy, we should adjust the strategic goal of pursuing double surplus to the strategic goal of pursuing balance of payments, so as to reduce the impact of external economy on domestic economy and ensure the balance of domestic and foreign economies.

(2) Take foreign direct investment as the strategic focus of future opening up.

To achieve the strategic goal of international balance of payments, especially to solve the influence of current international balance of payments imbalance on domestic economy, we need to find the correct strategic focus as a breakthrough. The mathematical expression of balance of payments: BP=NX+CF=0. Among them, BP is the balance of payments surplus, NX is the trade account surplus (net export), and CF is the capital account surplus (capital flow). Balance of payments surplus: the increase of official foreign exchange reserves: trade account surplus+capital account surplus. Therefore, in theory, there are two ways to achieve this goal: first, to achieve the respective balance of current account and capital account, and to ensure the overall balance of international payments; Second, achieve a comprehensive balance between economic projects and capital projects, that is, the surplus under one project is offset by the deficit under another project. However, the balance of trade items will have a negative impact on economic growth, because net exports are an important part of GDP. Under the current economic structure of China, it is difficult to adjust the economy to be driven by domestic demand in a short time, and we can only gradually reduce our dependence on external demand. Only when the domestic demand is large enough can the balance of trade items reduce the impact on economic growth. If the current account imbalance is difficult to balance in the short term, then the focus should be on the capital account. On the one hand, promoting foreign direct investment can gradually balance the capital account, and at the same time, it can ensure the effective use of foreign exchange reserves and reduce the impact on the domestic economy.

According to the reality of China's current opening-up strategy, we believe that the focus of China's future opening-up strategy is to further promote China's foreign direct investment. The reasons are as follows: First, further promoting China's foreign direct investment is an important means to solve the current problem of excessive foreign exchange reserves and realize the effective utilization of foreign exchange reserves. On the one hand, as long as the yield of our foreign direct investment is higher than the interest rate of buying foreign bonds, we can reduce the opportunity cost of holding huge foreign exchange reserves. On the other hand, with the reduction of foreign exchange reserves brought by foreign direct investment, the excessive growth of RMB supply brought by foreign exchange holdings can be reduced, which is conducive to solving the problem of excess domestic liquidity. Second, further promoting China's foreign direct investment can also ensure the future balance of payments. It can be predicted that under the attraction of China's huge domestic market and high economic growth, foreign direct investment in China will still maintain its growth momentum, and the repatriation of foreign direct investment profits in the future will also be an inevitable negative impact on China's international balance of payments in the future. The scale of China's foreign direct investment is large, and the foreign investment income will be large, which will offset the remittance of China's foreign investment income, and there will be no hidden danger of future revenue and expenditure crisis. Therefore, we should adjust the strategic focus of export-oriented and externally dependent opening to absorb foreign direct investment.

In addition, according to the experience of foreign direct investment in developed countries, foreign direct investment will have a positive impact on other aspects of the domestic economy. First, foreign direct investment will promote exports. Lipsey et al. (2000)' s research on the data of Japan, the United States and Sweden shows that from the perspective of manufacturing enterprises, the export of Japanese parent company to a foreign region is positively related to the local production of the parent company, and this relationship is getting stronger and stronger with the passage of time. The situation in the United States and Sweden is similar to that in Japan, but the intensity is weak. Wilamoski and 7inkler( 1999) studied the relationship between FDI and trade in the United States and Mexico, and found that FDI in the United States was the main reason for the sharp increase of trade between the two countries, and the export effect exceeded the import effect. The study of China data by Benwu (2006) also shows that China's direct investment in the host country promotes China's exports to the host country, but it has a substitution effect on imports from the host country. Second, foreign direct investment will drive domestic employment. Lipsey( 1994) has made a study on the situation in the United States. The results show that American companies with high overseas production share have more employees than domestic production companies, and foreign production needs to serve R & ampd more at the headquarters. D and supervision of employment. Blomstrom et al. (1997) made a comparative study between the United States and Sweden, and the results showed that the higher the foreign output, the more domestic employment, and the greater the effect in developing countries. Swedish companies rarely allocate labor-intensive production to low-wage countries, and foreign production, especially in developing countries, needs supervision and employment assistance from the parent company. Thirdly, foreign direct investment will increase China's national income. Feldstein (1994) showed in the Econometric Study on the Outflow Income of FDI in the United States that 1 USD of foreign direct investment can increase the present value of national income in the United States by a considerable margin, and every 1 USD of FDI can increase the present value of national income by 1.72 USD, which is close to twice the opportunity cost of these funds. Fourth, foreign direct investment will promote the upgrading of domestic economic structure. Wolff(2000) thinks that Japan has changed from a medium-tech economy in the 1970s to a high-tech economy in the 1990s, which is much faster than its main competitors, the United States and Germany. Blomstrom et al. (2000) believe that FDI outflow has played an important role in Japan's economic restructuring, and the relocation of Japanese enterprises' production activities has changed the characteristics of Japan's economy.

Therefore, vigorously promoting China's foreign direct investment is the key to solve many problems caused by the current economic imbalance at home and abroad and to form and improve China's mutually beneficial opening-up strategy. For the further growth of China's economy in the future, it is an inevitable strategic choice to implement the "going out" strategy and conduct foreign direct investment.