What Factors Cause Foreign-Funded Enterprises to Withdraw from China?

Abstract

In order to find out the reason why foreign-funded enterprises withdraw from China, by theoretical analysis and empirical analysis based on stepwise regression model, this paper found that rising wages, RMB appreciation and the driving force coming from China's industrial transformation and upgrading cause the withdrawal. According to these reasons, China must try to form new comparative advantages, improve the quality of foreign investment, optimize the structure of introduction of foreign capital, etc.