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Three decades of reform and opening proved that China's utilization of foreign capital in line with economic globalization trend. Foreign direct investment in China's economic growth, foreign trade, industrial upgrading and promoting economic reform and other aspects have played a positive role. At present, by the worldwide economic crisis, China's foreign investment has shrunk for two consecutive years. 2009, China's annual non-financial sectors of newly approved foreign direct investment enterprises 23,435 less than last year 14.8%; actual use of foreign direct investment amounted to 90 billion U.S. dollars, down 2.6%. April 6, 2010 China promulgated the \Encourage foreign investment in high-end manufacturing, high-tech industries, modern service industry, new energy and energy-saving environmental protection industry, promoting China's industrial structure adjustment, to achieve sustainable economic development. In the above context, how to determine the decision of the main factors of foreign direct investment, foreign direct investment in China found problems, make full use of China's current foreign direct investment determinants advantage, become successful use of foreign direct investment in the key. This paper reviews the theoretical perspectives related to foreign direct investment, combined with China's foreign direct investment in the current situation and its impact on economic growth, promoting effects on the determinants of foreign direct investment a theoretical and empirical analysis. In the theoretical analysis, the main advantage of Western economics theories and balanced supply and demand perspective, combined with the 1998 World Investment Report determinants of utilization of foreign investment in the host country analytical framework to analyze the equilibrium value of foreign direct investment decisions and the decision of FDI in China factor. In the empirical analysis section, the paper since 1990, China's foreign direct investment in the development of the research object, using eviews6.0 software, the Chinese foreign direct investment and market potential, infrastructure, cost factors, economic risks, trade development, degree of concentration , openness to foreign investment, human capital and other variables do a regression analysis. Regression results indicate: the higher the degree of openness, the more perfect infrastructure, lower cost level, the market potential for greater economic risk is smaller, the higher the degree of concentration, the larger the scale foreign investment. The international trade and foreign direct investment have some substitution effect. Based on theoretical analysis and empirical results of the study, this paper analyzes China SWOT analysis paradigm to introduce foreign direct investment and external environment, combined with the Chinese foreign direct investment problems, put forward China's foreign direct investment to further rationalize the policy recommendations.
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