A Study On The Investment Environment Of China’s Cement Industry In Countries Along "The Bele And Road"

As the largest cement producing country in the world,China has witnessed rapid development of production and equipment manufacturing technology in recent years.However,its rate of capacity utilization is still relatively low.As a result,this imbalance in supply and demand has left a negative impact on the long-time development of Chinese cement enterprises.Now “the Belt and Road” strategy not only provides a great opportunity for Chinese cement industry to expand its overseas business but also an effective way to solve its overcapacity and upgrade itself.However,the overseas business often faces great risks due to the complex and volatile investment environment.Therefore,the top priority for cement enterprises which have the intention to invest in countries along the Belt and Road is to make a full assessment of the investment environment of cement industry there.First of all,this thesis defines the relative concepts of overseas investment along the Belt and Road and combs the important trade theory relevant to overseas investment.Secondly,it finds out the important macro-level and micro-level factors of investment environment in the cement industry based on the research of the related literature.And then,it tries to concretely analyze the current situation of above factors in the countries along the Belt and Road.Thirdly,based on the theoretical basis of the investment environment research,an analytic hierarchy process is used to construct an index system which is suitable for the evaluation of investment environment of cement industry in the countries along the Belt and Road,and a questionnaire survey of industry experts is integrated to obtain a judgment matrix and calculate each index weight.Finally,some typical sample countries along the Belt and Road are selected to make a comprehensive evaluation and further analysis of the investment environment,and so some suggestions can be put forward for overseas investment from Chinese cement industry.This thesis divides the investment environment of cement industry along the Belt and Road into six major categories including political and legal environment,economic environment,cultural environment,resource environment,market environment and infrastructure environment,which include 17 specific evaluation indexes.AHP results show that the political and legal environment is the most important environmental factor,followed by the resource environment,while the cultural environment is the least important.As for the weight of the 17 indicators,the weight of the limestone reserves is the highest,accounting for 18.85%,followed by political stability and urbanization,accounting for 15.91% and 14.76% respectively.In addition,an assessment of the investment environment in Russia,Ukraine,India,Indonesia and Poland shows that India has the highest combined score,followed by Indonesia,while Ukraine has the lowest combined score.Finally,this thesis puts forward the risk aversion strategy including three aspects: political risk,market risk and transportation risk.In addition,this thesis proposes government protection strategy which consists of policy guidance,perfecting the legal system of overseas investment,perfecting investment and financing mechanism and building information platform.