Study On Policy And Institution Of China's Outward Foreign Direct Investment

By the end of 2017,China's outward foreign direct investment(OFDI)stock was $1809.04 billion,ranking second in the world.China's outward foreign direct investment flows was $158.29 billion in 2017,ranking third in the world.The rapid growth of China's outward foreign direct investment has become an important phenomenon in the global economy.This paper mainly adopts the methods of empirical analysis,policy analysis,comparative analysis,economic of law analysis and literature research,and constructs a theoretical framework from the two aspects of the home country government policy and the host country institutional factors.This paper mainly studies the influence of home country policy and host country institutional environment on China's OFDI,and focuses on the cross-border mergers and acquisitions(cross-border M&A)policy of China and the EU anti-circumvention system.First,from the national level,the research is good reference to improve the quantity and quality of China's OFDI.Secondly,from the enterprise level,this research has practical significance to the direct investment decision and behavior of the leading enterprise.Third,this paper explains the unique problems and phenomena of China's OFDI in recent years,and it is the supplement of the existing outward foreign direct investment theory.The innovation point of this paper is mainly in two aspects:(1)the measurement index of OFDI is measured from the three dimensions of strength,density and breadth;(2)the view is put forward in the cross-border M&A policy of Chinese enterprises and how to deal with the EU anti-circumvention system.The research content of this paper includes the following seven parts.First,the research background and significance of the topic are described,and the research content,research methods,logical structure and main innovations are introduced.Second,it reviews the main theories of OFDI,as well as the main literature related to policies and institutions,which provides the theoretical basis for the follow-up study.Third,it discusses four policies that affect the China's OFDI of home country,namely:(1)bilateral investment agreements,(2)the policy of cross-border mergers and acquisitions of Chinese enterprises,(3)the OFDI policy based on export and OFDI relations,(4)the foreign direct investment policy under the Belt and Road Initiative.Home country policy is an important factor affecting China's OFDI,usually positive support,but the home government should implement a restrictive policy when there may be risks or problems.The original intention of bilateral investment agreement is a protection of foreign direct investment by the home government,but when China's cross-border mergers and acquisitions have deviated from the rational track,the home government should have certain regulatory and restrictive measures.Export has always played an important role in China's economic development.The third chapter analyzes the relationship between export and outward foreign direct investment in detail,and puts forward the corresponding OFDI strategy in the sixth chapter.The Belt and Road Initiative is the focus of China's opening up to the outside world and OFDI.On the one hand,it is conducive to promoting international capacity cooperation,on the other hand,it can help China realize more international voice.Fourth,this paper probes into the institutional factors of the host country that affect the China's OFDI from three perspectives,namely:(1)the maintenance of the overseas interests of Chinese enterprises under the environment of the host country system,(2)the anti-circumvention system of the European Union.(3)the role of enterprise heterogeneity in the institutional environment of the host country.The institutional environment of the host country is an important factor affecting China's OFDI.When China invests abroad,it has to face different national systems,political environment,economic environment and complex human environment,so how to safeguard the legitimate rights and interests of Chinese enterprises has become an important issue.Taking the anti-circumvention system under the anti-dumping and countervailing law of the European Union as an example,this paper analyzes the influence of the institutional factors of the host country on China's OFDI,and puts forward some feasible countermeasures for Chinese enterprises.Using practical cases and from the perspective of enterprise ownership structure,this paper analyzes the different ownership characteristics of Chinese private enterprises and state-owned enterprises,and the role of this heterogeneity in outward foreign direct investment of enterprises.Fifth,using the method of economic of law analysis and comparative analysis,the relevant home country policy is discussed.The economic of law analysis is based on the efficiency concept in the economic field which equal the ratio of the output and the input,and a policy efficiency analysis model is constructed,the paper did the economic of law analysis on the cross-border M & A policy of Chinese enterprises and the reform of the financial service system.The comparative analysis deals with the difference of OFDI in China and Brazil,as well as the comparison of OFDI between China and India.Sixth,according to the above analysis,this paper puts forward policy suggestions at the national level and the enterprise level,which are the policy recommendations of cross-border M&A of Chinese enterprises and the anti-circumvention system of the European Union,how to participate in global governance policy recommendations and international capacity cooperation policy recommendations.Seventh,the conclusion of the study.This paper makes a general summary of the research content of the full text,and gives the conclusion of the full text according to the present situation of China's OFDI.The main conclusion of this paper is to strengthen international capacity cooperation,actively participate in global governance,and reshape the new international order;the government should continue to give tax rebate or subsidy policy support to investment enterprises;the government should guide enterprises to implement the dual strategy of international trade and OFDI and guide enterprises to pick up legal weapons in the event of unfair treatment in the investing country.In order to ensure that the cross-border mergers and acquisitions of Chinese enterprises return to real,compliant and rational behavior in the future,the government must implement a series of reform measures,and realize the transformation and upgrading of China's economy.As for the anti-circumvention system of the European Union,this paper holds that most of the so-called "circumvention behavior" in the European Union is not essentially different from the tariff circumvention behavior,and can be dealt with under the tariff law.This paper contributes to the knowledge system of China's outward foreign direct investment,including empirical analysis and policy recommendations.Unlike most studies on OFDI in emerging economies,we stress the importance of OFDI policies and institutions.The theoretical framework of this paper can also be extended to the analysis of OFDI policies in other emerging economies,which has certain reference significance for government and enterprise decision makers.This paper discusses the ownership characteristics of Chinese private enterprises and state-owned enterprises and their influence on cross-border M&A,and probes into the cross-border M&A of Chinese enterprises,which provides a useful reference for the return of cross-border M&A of Chinese enterprises to rational development.The research results of this paper are a supplement to the existing M&A literature,and also provide realistic enlightenment for the decision makers and managers of multinational corporations.Due to incomplete data and limited length of the thesis,this paper has not analyzed the legislation on anti-circumvention in WTO rules and the problems of China's leading the applicable legal system in the process of OFDI in the countries along the Belt and Road.