Abstract: At the beginning of reform and opening up, the implementation of "bringing in" strategy promote the increase of foreign direct investment(FDI) to China. However, since China’s access of WTO, the FDI of major developed economies to China has been showing a continued downward trend. Based on the empirical analysis in FDI of major developed economies to China from 1996 to 2012, this paper holds that the continued expansion of China’s market demand, the rise of production cost of enterprises and economic development level of investors are the main factors which determine the major developed economies’ FDI to China. The attenuation of China’s foreign policy dividend, the appreciation of RMB exchange rate and the change of foreign investment policies of investors have dissimilar effects to different developed economies. In order to attract major developed economies’ FDI to China, the host country should adjust the foreign capital policy on the basis of adhering to opening wider to the outside world. Eliminating the investment protectionism to promote bilateral investment is a significant strategy to make mutually benefits for both China and developed economies
Keywords: Developed Economies, Foreign Direct Investment(FDI), International Divestment, Bilateral Investment Treaty
source:Finance & Trade Economics ,No5,2014