FDI may affect the supply of productive resources including (financial capital, equipment and machinery, technology, management and etc.). FDI creates employment where unemployment and underemployment rate is high and thus increases the income of the workers. As a result an additional savings to the host country is created. FDI also has the backward effect. Through buying locally made materials and intermediate goods it creates a good environment for the locally produced goods. For China, the competitiveness of manufacturing sector and Trade Openness are increasing over the year since 1991. However, the Financial Openness of China is showing mixed result, it increased until mid-1990s and it
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