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Analysis of SME Foreign Direct Investment Status and Countermeasures

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Author: Siyi Xia

Abstract: Since the reform and opening up, especially after the entry of WTO, the enterprises have been actively integrated into the world economic system. Chinese small and medium-sized enterprises have gradually realized the optimization of resource allocation in global scope. Taking advantage of the innate advantages of Chinese small and medium-sized enterprises' foreign direct investment while avoiding blind foreign investment risks plays an important role in the improvement of our economic level and the promotion of our status in international trade. By analyzing the current situation, opportunities and challenges of foreign direct investment of Chinese small and medium-sized enterprises, this paper explores how small and medium-sized enterprises and Chinese government, as participants in the investment process, should optimize management and reform and innovation respectively, to create more quality and convenient environment for enterprise investment activities, and provide infinite possibilities for the development of domestic and foreign economic market.

Keywords: SMEs, FDI, Status, Countermeasures

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