On the Improvement of the Independent Innovation Ability of Chinese Manufacture Industry by the Technological Spillover Effect of FDI

The scientific and technological level is important to a country's economic security while transnational corporations (TNCs) usually have most of the advanced technology. Although TNCs help to improve the technological level of local enterprises of developing countries, they also occupy more market shares and squeeze out national brands, which seriously threaten Chinese economic security. However, China does not stop the investments of TNCs. On the contrary, China has made preferential policies to attract foreign capital, wishing TNCs bring benefits. Given TNCs increase the monopoly of Chinese market, causing Chinese economic development to be dependent on it, it is necessary to take measures to encourage local manufacture enterprises to make technological innovations, create independent brands and finally reduce the dependence on TNCs.