Investment priorities of economic reforms of China under global instability

Abstract

Introduction. Globalization processes have been accompanied by intensive liberalization of international economic relations for decades. It has led to the high sensitivity of the global economy to local manifestations of instability that has transformed into a global. A great number of countries were not ready for its consequences. Under the influence of global instability China has chosen its own model of economic reforms that is radically different from the models of other countries. The practical effectiveness of this model of market reforms in the 90-ies of XX century has became an impulse for foreign trade and investment activity of the country. Under such conditions the issue of determining the vector of investment development of China has actualized. The country's investment priorities in the context of economic reforms in terms of global instability can be determined as the subject of the study.

Goal. The article aims to identify investment priorities of economic reforms of China in terms of global instability.We have formulated the following objectives: to summarize features of global economic instability; to reveal the main aspects of economic reform in China; to analyze trends in its investment activity; to justify the importance of investment to reform the economy.

Methods (methodology). The methodological basis of the study is the dialectical method of scientific knowledge.The study has used general scientific and special methods. Among them the most significant are as the following ones: abstract and logical method (to draw conclusions of the study); methods of analysis and synthesis (to examine the basic trends of investment and reform of the Chinese economy); method of system approach ( to identify the causes and factors of global instability); graphical method.

Results. The causes and factors of global instability are determined. Their negative impact on the world economy is clarified. The peculiarities of the country's economic reforms are defined. The current investment policy of China is analysed. The approach of attraction of foreign capital to the country and export of investments are justified. The priorities of investment policy are formulated.