Mechanism and Evidence of the Impact of Foreign Investment on Foreign Trade in Jiangsu Province

Abstract

Since the modernization initiatives and opening up of China, the trajectory of national economic and social development has surged forward. Highlighted in the report of the Twentieth Party Congress, through a more proactive opening-up strategy, China has orchestrated a dynamic framework of international engagement on a broader scale, spanning diverse sectors, and with increased profundity. Notably, the ascendancy of China's foreign trade has been monumental, with the trade volume skyrocketing to 39.1 trillion yuan in 2021, a staggering increment from the turn of the millennium. Jiangsu Province, a pinnacle of export-driven economic prowess in China, benefits from its strategic placement in the eastern coastal belt, leveraging both its geographical advantage and rich resources. Serving as the nerve center of the Yangtze River Delta, Jiangsu is also a crucial nexus in the "One Belt, One Road" initiative, bridging regions such as Beijing, Tianjin, and Hebei. Propelled by the collaborative spirit of the "Belt and Road" nations, the infrastructural evolution of the Jiangsu Pilot Free Trade Zone has seen exponential growth, bolstering Jiangsu's outward-focused economy. As such, a meticulous examination of foreign investment trends in Jiangsu can illuminate invaluable insights for shaping the foreign economic stratagem of the province. This, in turn, can act as a catalyst to refine China's FDI blueprint and champion a paradigm of sustainable excellence in development.