Based on the results of the empirical analysis concerning the upgrading effect of foreign investment on industrial structure, the paper comes up with some policy thinking and proposals for strengthening orientation of industrial policy for foreign investment and promoting adjustment of industrial structure.

From the perspectives of forms of flow, geographical distribution, industrial composition and the relationship between host countries and trans-national companies, the paper reviews the main features of international flow of FDI since 1990s and explores the basic factors affecting international flow of FDI based on the views of relevant international investment theory and the results of empirical studies.

The paper examines the advantages and disadvantages of China in attracting foreign direct investment in the future, and on that basis, makes a basic estimation of the possible trend of foreign investment growth.

The paper examines in detail the Japanese forest system in terms of law, organizational structure and planning, analyzes as a priority the changes in the policy and concept of forest management in recent years and the thinking over the reform of the state forest, and puts forward some proposals for the establishment of China's forest management system by drawing upon the Japanese experiences.

With competition pressure from outside, the emerging economies relaxed the regulation of inbound foreign investment.

It is difficult to rely only on administrative approval to effectively prevent the risks associated with the investment and operation of state owned enterprises in foreign countries.

The paper first conducts a systemic and overall analysis of China's foreign trade situation in 2001 and the causes for its change.