Xi' an is a central city to implement the strategy of developing the western region, with abundant resources, strong educational and scientific strength, and a good economic foundation among western cities. It is typical and representative to study the utilization of foreign direct investment (FDI) in Xi' an to explore the utilization of FDI in the western region to promote the rapid development of the local economy. 1. environmental analysis of FDI utilization in Xi' an

1 international environmental analysis. Favorable factors: (1) The trend of economic globalization is further accelerated, and there will be a breakthrough in the degree of market opening in all countries of the world, and goods and capital will flow freely in a wider range; (2) With the development of financial innovation, financial integration and the acceleration of international capital flow, it will objectively provide broad space and potential for developing countries to attract FDI. (3) In 2117, the world economy still maintained steady and rapid growth, and the increase in profits of multinational corporations also accelerated the international investment flow. Disadvantages: (1) According to the report "Global Economic Outlook 2118" published by the World Bank on October 9, 2118, the growth rate of the world economy will slow down. Due to unstable oil prices, increasing inflationary pressure, rising interest rate expectations, etc., especially the obvious slowdown of the US economy, it may put pressure on the growth of business investment, prompting multinational companies to act more cautiously. At the same time, due to the impact of the subprime mortgage crisis, especially in the three major economic regions centered on the United States, Japan and the European Union, economic growth has slowed down and domestic demand has declined, which has frustrated the investment confidence of multinational companies, and foreign direct investment may fall sharply globally. (2) Competition to attract foreign direct investment has intensified. First, developed countries attract more FDI； by virtue of their perfect and mature capital markets and financial means; On the other hand, other developing countries have also adopted more preferential policies to exchange more foreign technology and capital through market development, including capital market. 2 domestic environmental analysis. Favorable factors: (1) China's entry into WTO will promote the improvement of investment environment, and enable China to participate in the international division of labor at a broader, wider and deeper level, thus realizing market diversification. China can enjoy the convenience of trade and investment liberalization of WTO members, promote China's economic integration into the world economic system, develop foreign trade, absorb foreign investment and participate in international economic cooperation. (2) The western development policy encourages foreign investors to invest in infrastructure construction and energy opening in the west, such as agriculture, water conservancy, ecology, energy, minerals, transportation, municipal administration, environmental protection and tourism, which further expands the fields of foreign investment and broadens the channels for foreign investment. In particular, expanding the opening up of the service sector will improve the quality of foreign capital utilization in Xi' an. As the bridgehead of western development, Xi 'an undoubtedly has the favorable conditions for FDI to enter. (3) Deepening the reform of state-owned enterprises will attract more foreign investment. The reform of state-owned enterprises urgently needs the injection of foreign funds to revitalize assets and update technology; At the same time, state-owned enterprises have more advantageous industrial resources, which will certainly form a great temptation for foreign investors. Disadvantages: domestic competition to attract FDI has intensified. The economically developed eastern coastal areas will still become the main areas to attract foreign investment in China due to the convenient advantages of their own infrastructure, transportation and other investment environments. In addition, other western regions, especially Chongqing, Chengdu and Xi 'an, are facing increasingly fierce competition in attracting foreign direct investment. 3 Xi 'an comparative advantage of FDI analysis. When analyzing the determinants and influencing factors of attracting FDI in Xi 'an, we can find that Xi 'an has the following comparative advantages: (1) Location advantage. Xi 'an is an inland open city approved by the State Council, and the coastal open city policy is implemented. Xi 'an can make full use of its unique geographical position to position itself as the central city of the Eurasian Continental Bridge, plus its own strong scientific and technological strength and industrial base. It is also an internationally renowned ancient capital and tourist city. It is fully hopeful to develop into a trade center between the east and the west, a science and technology center in inland areas, an important national import and export substitution industry center, an important national property rights trading center, a technology trading center in the central and western regions, a historical and cultural tourism opening center in China, and will eventually become the economic center of China on the Eurasian Continental Bridge. The formation of this center will enable Xi 'an to reproduce the glory and prosperity of the Silk Road. (2) Advantages of high technology and talents. Xi 'an ranks among the six national high-tech industrial bases and becomes the only comprehensive national high-tech industrial base in western China. At the same time, Xi 'an is the largest higher education base in the western region. There are 9 national scientific research bases, 334 doctoral programs, 826 master programs, 61 national key disciplines and 385 provincial and ministerial key disciplines in Xi 'an, and the scientific and technological strength and talent advantages are quite obvious. (3) Advantages of tourism. Tourism is an industry with absolute advantages in Xi 'an, especially represented by its unique human landscape. Historically, Xi 'an has attracted hundreds of thousands of tourists every year with its long ancient civilization, splendid history and culture and rich tourism resources, especially the eighth wonder of the world, the Terracotta Warriors and Horses. Second, the current situation and existing problems of utilizing FDI in Xi 'an

1 The current situation of utilizing FDI in Xi 'an. During the Tenth Five-Year Plan period, foreign direct investment in Xi 'an totaled US$ 1.483 billion, with an average annual growth rate of 29.6%. In 2111, the GDP and total amount of Xi 'an ranked second from the bottom among the 15 sub-provincial cities in China, and the actually utilized foreign capital was only $77 million, which was lower than that of a county-level city in the east. By 2115, the actual foreign investment in Xi 'an was 571 million US dollars, up 1.17% year-on-year, ranking first in the western cities, and the growth rate ranked first among the 15 sub-provincial cities in China. In 2117, 135 foreign-funded projects were newly approved, and the contracted foreign direct investment was 1.44 billion US dollars. Although it decreased by 21.1% compared with the previous year, the actually utilized foreign direct investment was 1.116 Z US dollars, an increase of 353%. By 2116, more than 81 Fortune 511 companies from the United States, Japan, Germany and other countries and regions have settled in Xi 'an. 2, the characteristics of Xi 'an's use of FDI. (1) The stage characteristics of utilizing FDI. The utilization of foreign direct investment in Xi 'an has a history of more than 21 years since China and the United States cooperated with Jinhua Hotel in 1983. The changes of the utilization of foreign direct investment in Xi 'an from 1991 to 2117 are shown in Figure 1. As can be seen from Figure 1, according to the investment scale of foreign direct investment in Xi 'an, its development process can be divided into four stages: the first stage is from 1983 to 1991, which is an exploration, development and gradual stage, with the main characteristics of low base and small scale, and its investment is an exploration and adaptation behavior; The second stage, from 1992 to 1996, is a high-speed development stage. The main feature is that after foreign businessmen are familiar with all aspects of Xi 'an, they show investment tendencies such as low investment base, large scale and wide investment fields. The third stage, from 1997 to 2113, is a stage of steady development and adjustment. During this stage, due to the influence of the Asian financial crisis, the amount of foreign direct investment and actually utilized FDI temporarily adjusted and decreased, but during the adjustment of investment scale, the amount of utilized foreign capital fluctuated little in each year, and it recovered and increased in 2111. The fourth stage, from 2114 to now, is a relatively rapid development stage. At this stage, the contracted utilization of foreign capital and the actual utilization of foreign capital in Xi 'an have increased significantly.

(2) utilizing the regional characteristics of FDI. Judging from the structural distribution of countries and regions where foreign direct investment has been used in Xi 'an, Hong Kong's investment in Xi 'an accounts for nearly half of the total investment. Followed by the United States, the direct investment in Xi' an accounts for 11.5% of the total investment; Ranked third is Taiwan Province, whose investment accounts for 7.4% of the total investment; This was followed by Japan, Singapore, Canada and Macau, accounting for 5.5%, 2.1%, 1.2% and 1.34% respectively. (3) The investment mode and structural characteristics of utilizing FDI. Xi 'an attracts FDI mainly in three forms: joint venture, cooperation and wholly foreign-owned, among which the direct investment in the form of joint venture is more than that in coastal areas. (4) Making use of the industry characteristics of FDI. The utilization of FDI by manufacturing industry occupies an important position, accounting for 61.8% of the total amount of FDI utilized by foreign investors; The investment fields are mostly limited to the secondary industry and real estate industry, with less investment in the primary industry and the tertiary industry except catering and tourism services. The newly opened investment fields such as finance, tourism agency, lawyer service, accounting audit and wholesale and retail business have not become the hot spots of investment. 3 Xi 'an's main problems in the use of FDI. From the above-mentioned analysis of the current situation and characteristics of FDI utilization in Xi 'an, it can be summarized that there are the following problems in attracting FDI in Xi 'an:

(1) The investment structure is unreasonable. The utilization of FDI in Xi 'an is mainly concentrated in the secondary industry, while the potential of attracting foreign investment in the primary and tertiary industries has not been fully exerted. As a country with a large agricultural population, it is very necessary to give full play to the potential of attracting investment from the primary and tertiary industries. (2) The way of attracting investment is single. At present, the traditional ways of attracting foreign investment in Xi 'an are still joint venture, cooperation and wholly foreign-owned. However, due to the poor M&A environment in Xi 'an, it is difficult to adopt more M&A methods, which are dominant in transnational investment, which is contrary to the worldwide trend of capital securitization. (3) Lack of introduction of large projects. Judging from the investment projects, the coastal areas have formed a scale and climate in introducing export-oriented leading industrial projects and pillar industrial projects that can drive the overall economic situation and have certain competitiveness, while Xi 'an has not formed a joint force of all parties to actively cooperate to overcome large projects in introducing large projects. So far, Xi 'an has only settled in Xi 'an High-tech Zone in 2116 with US applied materials of 255 million yuan. (4) The investment environment is not satisfactory. Due to poor natural conditions, backward infrastructure such as transportation and communication, and blocked information, the economy is in a backward state in the country, especially the gap with the eastern capital cities has a tendency to expand. From the soft environment, the service organizations, laws and regulations, and the implementation and implementation of policies are not satisfactory. In addition, the concept is conservative, the thought is backward, the fields and methods of utilizing foreign capital are hidebound, and the sense of opportunity is weak. Therefore, the rate of return after the entry of foreign capital is not high, which affects the investment motivation of foreign investors. Iii. countermeasures and suggestions for utilizing FDI in Xi' an

according to the actual situation in Xi' an, the countermeasures for attracting FDI in Xi' an should mainly start with optimizing the investment environment, actively innovating the ways of attracting foreign investment, encouraging foreign capital to merge and transform state-owned enterprises, and giving full play to the leading role of development zones. 1 generation investment environment. Optimizing the investment environment is a process of dynamic promotion and systematic development, which should mainly start from the following points: (1) Continue to strengthen infrastructure construction. Xi 'an should raise funds extensively by issuing bonds, stocks and attracting foreign investment, strengthen the renovation and maintenance management of existing infrastructure, and build Xi 'an into a modern metropolis with developed energy and water supply systems, developed sea, land and air transportation systems, developed telecommunications networks and pleasant scenery. (2) Create a first-class soft investment environment. Intensify efforts to create an efficient, open and fair administrative environment, focusing on system innovation, mechanism innovation and management innovation, simplifying administrative examination and approval, improving administrative efficiency and standardizing administrative behavior; Create an open, fair and transparent policy environment, and ensure that foreign investors and foreign-funded enterprises understand and support the current policies and regulations on the utilization of foreign capital, and at the same time ensure the unity and impartiality of all policies in the implementation process. (3) Accelerate the construction of regional economy and create a good ecological environment. We should focus on promoting the adjustment of economic structure in Xi 'an, cultivating and protecting advantageous industries, improving the competitiveness of the whole city, fully tapping the potential of industries, resources and markets, giving full play to the advantages of automobile, electronic information, high-tech software technology and pharmaceutical industries in our city, making it a big cluster economy and expanding the industrial cluster effect. 2. Actively innovate ways of attracting investment. First of all, increase investment attraction for large projects. Development zones and large industrial groups should allocate enough funds, ask professional institutions or experts to carefully package a number of large-scale projects with high quality and attractiveness, and establish extensive contacts with multinational companies, foreign big trading companies, big consortia, domestic and foreign industries, entrepreneurial groups, scientific research groups, intermediaries, etc., and seek partners, so as to increase the investment attraction of large projects. Second, expand new areas of attracting investment. The state has promulgated a series of regulations on foreign investment in establishing investment companies, venture capital enterprises, commercial retail enterprises, construction enterprises, road transport enterprises and logistics enterprises, and relaxed the fields of utilizing foreign capital. Relevant departments in Xi 'an should conduct in-depth investigation and study, formulate implementation plans, and make breakthroughs in the above-mentioned new areas of attracting investment as soon as possible. Thirdly, explore new ways of attracting investment. Merger and acquisition has increasingly become an important investment mode for multinational companies. Many multinational companies focus on concluding strategic alliances, and various venture capital and investment funds have become an important force in international investment. Facing the new changes in the field of international financing. Xi 'an should speed up the pace of enterprise reform and enhance the quality of enterprises in line with international standards. 3. Encourage foreign capital to merge and transform state-owned enterprises. The reform of state-owned enterprises is a key link in the establishment of a market economy system in China. At present, some achievements have been made in the reform of state-owned enterprises in Xi 'an, but new reform models need to be further sought. Therefore, Xi 'an should actively encourage foreign capital to merge and transform state-owned enterprises in introducing foreign direct investment. The mode of transforming state-owned enterprises by foreign capital mergers and acquisitions: first, Xi' an state-owned enterprises can be integrated into the global value chain, and the market competitiveness can be improved by injecting efficient assets; Second, it can significantly improve the quality of stock assets of state-owned enterprises; Third, after the merger, foreign investors will make additional investments in the original enterprises and carry out technological transformation to improve the technological level of state-owned enterprises in a short period of time; Fourth, it is helpful to upgrade the industrial structure of this city. Give play to the leading role of the development zone. Xi 'an Development Zone is formed by the merger of two national development zones, namely, High-tech Industrial Development Zone and Economic and Technological Development Zone, Qujiang Tourism Resort and Modern Agricultural Comprehensive Development Zone. Since 2113, the main economic indicators of Xi 'an Economic Development Zone have maintained a growth trend of 41% for five consecutive years. The comprehensive evaluation results of 2116 state-level economic and technological development zones released by the Ministry of Commerce show that the GDP, industrial added value and actual utilization of foreign capital of Xi 'an Economic Development Zone rank first among the 13 state-level economic and technological development zones in western China, which has made important contributions to the economic development of Xi 'an. In order to realize the leap-forward development of Xi 'an in utilizing foreign capital, we must give full play to the leading role of development zones. (1) Create "four platforms" and create a good investment environment. That is to build a "project platform" to provide investors with more cooperation carriers; Create a "capital platform" and establish more financing institutions for investors; Create a "talent platform" to meet the needs of investors for talents; Create an all-round "service platform" to solve problems such as policy consultation, intermediary service and project coordination for investors. (2) Increase the investment attraction of large-scale projects in the Development Zone, and improve the investment attraction effect. (3) Establish a high-quality, export-oriented professional investment team to better serve the work of attracting foreign investment. (4) the development zone should rely on the mother