Research on the Dynamic Relationship between Trade Openness, Foreign Direct Investment, Capital Formation and Industrial Economic Growth in China

Since the reform and opening up, with the inflow of FDI and the strengthening of trade openness, China has become one of the fastest growing economies in the world. In addition, in the past few decades, China's economy has continued to grow steadily, attracting a large amount of foreign direct investment (FDI) inflows. From 1991 to 2019, the average annual growth rates of China's FDI inflows, industrial economy, and GDP were 13.5%, 14.4%, and 14.6%, respectively. Among them, China’s total FDI inflow in 2000 was US$4.0715 million, and was US$10,573,500 in 2010, with an increase of 159.7% from the same period in 2000. In 2019, the total FDI inflow was US$13.814 million, with an increase of 30.6% and 2.4% from 2010 and 2018 respectively. Nowadays, in the context of economic globalization, China has become the largest country of FDI inflows from developing countries, and the scale of FDI inflows is second only to the United States, ranking second in the world. However, while China’s foreign trade and FDI inflows are driving the rapid development of the industrial economy, compared with developed countries, China’s technological level has increased relatively slowly. The industrial economic growth is overly dependent on large amounts of capital, labor, and resources, resulting in the problems of resource shortages and environmental degradation being increasingly serious. Therefore, how to provide rational guidance for FDI industrial layout and trade openness structural adjustment, and give full play to trade openness and FDI to promote the transformation of China's domestic industry and national economic growth mode is of vital importance

改革开放以来，伴随外商直接投资（FDI）流入与贸易开放程度不断深化，中国已跻身全球经济增速最快的经济体行列。此外，过去数十年来中国经济保持稳健增长，进一步吸引了大规模外商直接投资流入。1991年至2019年间，中国外商直接投资流入额、工业经济与GDP的年均增长率分别为13.5%、14.4%与14.6%。其中，2000年中国外商直接投资流入总额为407.15万美元，2010年增至1057.35万美元，较2000年增长159.7%；2019年该总额达1381.4万美元，较2010年与2018年分别增长30.6%与2.4%。当前，在经济全球化背景下，中国已成为发展中经济体中吸引外商直接投资流入规模最大的国家，其外商直接投资流入总额仅次于美国，位列全球第二。然而，尽管中国对外贸易与外商直接投资流入推动了工业经济的快速发展，但与发达国家相比，中国技术水平的提升相对迟缓。工业经济增长过度依赖大规模资本、劳动力与资源投入，导致资源短缺与环境退化问题日益严峻。因此，如何合理引导外商直接投资产业布局与贸易开放结构调整，充分发挥贸易开放与外商直接投资的带动作用，推动中国国内产业转型与国民经济增长方式转变，具有至关重要的意义。