Since the international financial crisis, countries have paid more attention to the goal of full employment. Generally speaking, foreign imported products will compete with domestic products. Once domestic products are replaced by imported goods, domestic workers engaged in the production of such products will lose their jobs, which is the fundamental cause of trade friction. Encourage Chinese enterprises to transfer production activities to trading partner countries with lower labor costs. On the one hand, it can replace exports to target countries and increase employment in target countries. On the other hand, foreign-invested enterprises can still obtain export profits by producing and selling locally, and reduce the surplus from their own countries, which can also avoid trade friction.
the purpose of the above words?
Foreign direct investment is conducive to easing international trade frictions.