This paper attempts to explain the economic effects of French direct investment in China on the French economy, based on our survey results using the relative data and case study. The paper begins with a brief description of the scale, location, industries, firms and forms of French direct investment in China, and then explains the economic effects of French FDI in China on both nations, such as the employment and income, import and export, balance of payments, industry hollowing, technological improvement, and others. Finally, the paper provides a case study about the success of Qingdao Hairun Water Supply Corp. Ltd, one of EJV of Sino French Water Development Company Ltd.
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Paper provided by School of Economics, University of Queensland, Australia in its series EAERG Discussion Paper Series with number
0605.
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