Analysis of Investment Policies in China and the U.S. and the Impact of FDI on China’s Economy

School of Business, East China University of Political Science and Law, Shanghai, 201620, China

^* Corresponding author: 22052901219@ecupl.edu.cn

Abstract

With the acceleration of the globalization process and the increase in international links, global trade and transnational investment are growing rapidly, and a clear and sound investment policy system can provide clear guidance and support to domestic enterprises and investors, while also influencing investment decisions and willingness to cooperate of other countries or regions. This paper presents a concise summary of the investment policies of China and the United States. It highlights that the United States’ investment policies primarily consist of outward foreign direct investment (OFDI) policy and the safeguarding of domestic industries and capital, while China’s focus remains on attracting foreign investment, with continuous OFDI policy improvement. This paper also analyzes the positive impacts and risk challenges of FDI on China’s economy. FDI generally promotes China’s economic growth, provides employment opportunities, improves the quality of labor, promotes technological progress, and enhances innovation, but it also faces a series of problems, especially the negative side of economic stability, market competition, and coordinated social development. Improvements in all these issues require timely adaptation and guidance from national investment policies.