중국의 외국인투자 정책 변화와 대응전략

Change of Policies for Foreign Direct Investment in China and Its Countermeasure

Since initiating economic reform and liberalization policies in 1979, Chinese government has enforced the policy to induce foreign direct investment(FDI). As a result, FDI in China has increased significantly and contributed to the growth of Chinese economy. After establishing diplomatic ties with China in 1992, investment to China by Korean enterprises has increased steadily and is expected to augment further considering the continuing growth of Chinese economy. Recently, due to their high saving rate and enormous trade surplus, Chinese government changed the basis of FDI policies not to increase only the amount of investment but to seek quality efficiencies in mobilizing investment. In their 11th 5-year Economic and Social Development Program (2006~2010). Chinese government specifies the various plans for FDI such as promoting efficiencies and diversity in use of foreign capitals, imposing the strict rules for reduction and exemption of tax, and enforcing technological transfer and R&D investment. The purpose of this study is to analyze the effect of the various plans related to FDI policies in China, which can be either beneficial or risky to Korean investors, and to establish its countermeasures by examining the current situation of investment activity and management of Korean enterprises in China. The major factors favorable to Korean investors from the policy change can be summarized as follows: i) Increased opportunities to invest in agricultural facilities due to the policy for modernizing rural areas. ii) Expansion of investment into the various region and infrastructure-related fields due to the policy for promoting the balanced regional development. iii) Improved environment for competing with Chinese enterprises in the domestic markets due to the policy for strengtheningthe protection of intellectual rights and for easing obstructive regulations against fair trade. In contrast, the followings are some of unfavorable factors: i) Losing the competitive edge due to the policy to enforce technological transfer from MNCs and to foster import substitution and leading export industries. ii) Incurring the heavy burden due to the policies to pursue the stability in the labor market, to administer the strict relations between labor and capital, and to build the social security Finally, this study suggests the following strategies for FDI in China to Korean enterprises: i) Augmenting investment into the distributions markets with increasing domestic demand. ii) Converting the priority of investment from the manufacturing industry to service sectors. iii) Diversifying the region of investment with strategical approach and steadily carrying out the localization of the various projects such as R&D.