Research On The Performance Of Foreign Direct Investment Of Chinese Aluminum Industry Enterprises

Because of its light weight,strong conductivity and high ductility,aluminum is widely used in building materials,aviation,electronics and other fields,and is the second largest metal in demand after steel.Aluminum industry is a traditional resource industry.Due to the limited quantity of domestic bauxite resources,low grade and high production energy consumption,enterprises have a huge demand for the import of bauxite.In recent years,there are more and more cases of aluminum industry enterprises securing bauxite supply through foreign direct investment.However,due to the large amount of capital required for OFDI in aluminum industry,numerous stakeholders,government intervention in host country,strong international competitors and other reasons,the success rate of OFDI in aluminum industry enterprises is not high.Based on the analysis of the current situation of foreign direct investment of enterprises in aluminum industry,this paper focuses on the direct investment projects in Indonesia and Guinea of China Hongqiao Group,a leading enterprise in aluminum industry,to analyze the motivation,process and difficulties of foreign direct investment of enterprises in aluminum industry,using event analysis method and financial index method.The short-term and medium-term performance of foreign direct investment are analyzed empirically.The results show that China Hongqiao’s direct investment in Indonesia and Guinea has a positive impact on enterprise performance on the whole,optimizing the distribution of enterprise industrial chain and realizing "upstream and downstream integration".On this basis,some suggestions are put forward to establish the industrial chain alliance of aluminum industry,adjust the investment direction of aluminum industry according to the policy changes of host country,localize overseas talents of aluminum industry enterprises,strengthen the cooperation between aluminum industry enterprises and the government,and actively fulfill overseas social responsibilities.