GAME Study On Chinese Companies' Utilization Of Russian Forest Resource

As the utilization of forest resource is concerned more and more by international community, the sustainable utilization of forest resource is now the hot topic for governments, NGO and common people. As a super wood processing country, Chinese import of roundwood (Rwd) is also involved. Because some problems, such as illegal logging and destruction of natural forest, are found in many country who export round wood traditionally, international Rwd trade is criticized by international community. Therefore, many Rwd exporters begin to change their export structure and forestry policies. In this case, the supply for Chinese primary processed products and raw materials of wood processing industry is narrowed down, and the scale of international trade will become smaller and smaller. At the mean time, the domestic supply is also limited because of Chinese forestry project in recent year. So the supply of wood products for Chinese market is no longer secure and stable, and a new way—forestry foreign direct investment—is developed and approved by Chinese government and corporations. Chinese companies invest around the whole world where forest resource is rich. As one of the target region, Russia is the best choice because of its advantage, such as the long border between China and Russia, the history of forestry cooperation and so on. But it runs not always easy. The Chinese companies which invest in Russian forestry industry are facing various problems, for example, management risk and finance difficulty.To ensure the stable supply of wood products for meeting the demand of Chinese economic development, it is necessary and meaningful to study the solution of the existed problems. Therefore, this thesis focus on the Chinese enterprises which invest in Russia forestry industry. Firstly the internal and external environment of Russian forestry investment are studied to introduce the need, feasibility and complexity for Chinese companies. Then the real reason of these problems can be found. It is found that the problems are directly related with stakeholders, which means the solution should also be related with stakeholders. During the process of Chinese companies'investment in Russian forestry, the stakeholders, such as Chinese & Russian governments, NGO and people of communities around forest, own interest related with the investment practice and influnce the practice too. So this study take GAME theory, make GAME models between stakeholders and forestry enterprises, and analysis the possibility of and the way to realize the maximization of individual stakeholders and overall balance of benefit. According to the result of GAME and Nash-equilibrium analysis, various subjects are give for stakeholders and the companies to improve their behavior, and also information-sharing platform and monitoring system including all individuals.For the research methods, the study take the methods of literature review and key informant interview on NGO experts, governmental officials and experts of foreign universities to discuss the problems of Chinese companies and understand the research question from several views. Then all stakeholders are divided into different groups by the method of classification to analysis organized and systematically. And GAME theory and model are also involved in this study to study the balance condition for stakeholders. In addition, empirical method is also used to test the theoritical model.