Analysis on the Development Process and Economic Impact of China’s Foreign Direct Investment

Since the founding of the new China, especially since the reform and opening up, the development of China’s foreign direct investment has opportunities but also faces challenges. Based on previous studies, this paper summarizes and analyzes China’s foreign direct investment into six stages: blank, exploration, start, adjustment, rapid development and comprehensive development, and analyzes its economic impact. In the phased development process of China’s foreign direct investment, it is also affected by multiple factors at home and abroad, showing the characteristics of wave evolution and periodic fluctuation. At the same time, China’s foreign direct investment has a positive economic impact on itself, the host country and even the world from the micro level to the macro level. In the future, China’s foreign direct investment should move towards a higher quality and level with the joint efforts of the government, enterprises, the market and society.