The significance of outward foreign direct investment

The development of outward foreign direct investment is of great significance to the development of China's economy, which is mainly manifested in the following aspects:

1. By acquiring enterprises or purchasing shares in industrially advanced and technologically advanced countries and regions, and by directly operating them or participating in their operation and management, we can absorb the advanced technology therein and learn the effective management experience and methods, which helps to improve the overall technological level of the country

2 The company's management and operation are the most effective and efficient in the world.

2. In recent years, some of China's traditional processing industries have faced saturation in the international market, and the Asian financial crisis has caused China's export growth rate to drop significantly. Enterprises to foreign investment, not only can avoid the tariffs and non-tariff barriers set by some countries on Chinese products, drive the export of domestic raw materials, auxiliary materials, semi-finished products and complete sets of equipment, but also can provide domestic enterprises with accurate international market conditions, reduce the blindness in the export.

3. By investing in foreign resource industries, we can reasonably and effectively utilize foreign natural resources to make up for the shortage of domestic resources and promote domestic economic development.