Research On Overseas Greenfield Investment Strategy Of Chinese Enterprises Under Double Circulation Background

The trade war triggered by the Sino-US trade friction that began in July 2018 eventually led to discriminatory tariffs on US$550 billion of Chinese goods exported to the United States,causing heavy losses to Chinese foreign trade enterprises.In the foreseeable future,Sino-US trade frictions will continue to escalate,and Sino-US relations will also enter a "quasi-Cold War" state.Facing the unbearable pressure of export tariffs and the complicated international economic and social situation.In recent years,Chinese foreign trade enterprises have chosen to go abroad and set up production bases overseas to reduce the pressure of tariffs and taxes.At the same time,in 2020,according to the complex international social environment facing our country,the Chinese government has proposed a new development pattern of "dual circulation" to plan economic development strategy.Combining the national macro development strategy and the practical problems faced by foreign trade enterprises,where should Chinese enterprises go to carry out overseas greenfield investment,and how to achieve high-performance "going out",it is undoubtedly an important issue for enterprises that intend to "going out".Based on the analysis of the data of Chinese enterprises’ overseas greenfield investment from 2011 to 2019 in the Financial Times FDI Intelligence database,this paper systematically selects these five dimensions from the overall situation,industry structure,regional distribution,country selection,and tax haven.The data were analyzed,and summed up the suggested strategies suitable for Chinese enterprises’ overseas greenfield investment.On this basis,the PESTEL analysis model is used to systematically sort out Fuyao Group’s overseas greenfield investment under the influence of different external environmental factors,and provide strategic guidance for the company’s overseas greenfield investment with the help of cases.Through data analysis and case studies,this research provides theoretical methods for Chinese enterprises’ overseas greenfield investment from different perspectives,and empowers enterprises to make strategic decisions on overseas greenfield investment.Mastering the current status of Chinese enterprises investing in overseas greenfield can help Chinese enterprises locate the market based on their own conditions and assist them in making overall strategies for overseas greenfield investment;By analyzing the selection of Chinese enterprises’ overseas greenfield investment in industries,regions,countries and offshore ports,it can help enterprises to efficiently and accurately locate investment destinations suitable for their own development;From the case of Fuyao Group’s overseas greenfield investment,it is analyzed how Chinese enterprises should carry out overseas greenfield investment with high performance under the influence of different external environmental factors,as well as what kind of coping strategies should be adopted in response to different external environmental factors.