Research On The Interaction Between Politics And Economy In Foreign Direct Investment

Facing the complicated international political and economic situation,how to establish the most effective diplomatic strategy is an eternal proposition of each country in different historical times.Especially since economic globalization,the world situation has shown completely new features that are completely different from the past.International political economy has emerged in response to this trend.Analysis of the politics and economy between countries and regions is complicated and involves a wide range of issues.However,the interaction between economy and politics is the essential consideration.Economic diplomacy plays an increasingly important role in the country's overall diplomatic strategy.As an important branch of economic diplomacy,investment diplomacy has received increasing attention.This essay takes “outward foreign direct investment(OFDI)” as the research object,and uses the classic methods of international political economy to analyze the impact of this economic instrument on bilateral relations,regional politics,and global politics.At the same time,the political diplomacy factors that affect foreign direct investment are also discussed.By this means,we try to show the political and economic interaction in OFDI.The highlights of the essay are: 1.OFDI is not just simply a multinational company chasing economic interests,but originates from and serves national interests;2.OFDI has dual attributes of economy and diplomacy,only from the perspective of political and economic interaction can OFDI be fully understood and performed.3.With the rapid development of China's overall economy and the proposal of the Major Power Diplomacy with Chinese Characteristics in the new era,China's OFDI has entered a new stage.4.Relying on the "Belt and Road" Initiative is continuously promoted,OFDI should be taken as a breakthrough,drive economic diplomacy through investment diplomacy,and then promotethe comprehensive diplomacy,serving the country's overall political and economic strategic goals and building a community of shared future for mankind.Specifically,the main content of the Introduction is to raise research questions.First,a few important concepts are identified and sorted out: OFDI,economic diplomacy & investment diplomacy,and national interests.Then,a detailed and comprehensive literature review is conducted on the status of domestic and foreign research on international direct investment.It is found that most studies so far have focused on the analysis of the economic utility of OFDI.Although some scholars have discussed the relationship between transnational corporations and nation-states,but they are mostly limited to the political influence of transnational corporations on the host country or home country.In the context of economic globalization,economic diplomacy,which uses multinational corporations' OFDI as one of the main means,has gradually played an increasingly important role in the country's diplomatic strategy.Therefore,exploring how to improve the diplomatic effect of foreign direct investment is a very important area of international political economics research,which has been ignored.Therefore,the main issue of this paper is put forward.Chapter One elaborates the development history and theory of OFDI in a comprehensive and detailed manner.Chapter Two systematically expounds the economic and political effects of multinational corporations' OFDI through specific empirical research,as well as the political and diplomatic factors that affect foreign direct investment.Chapter Three uses the case analysis method to conduct a political and economic investigation of Japan's OFDI,demonstrating the political utility of OFDI,and summarizing its enlightenment to China's OFDI.Chapter Four analyzes and sorts out the development history and current situation of China's OFDI,as well as the current new challenges.Chapter Five analyzes the current international political and economic situation and China's position in the world structure,especially from the “Belt and Road” Initiativevision,and analyzes OFDI and China's economic diplomacy in the new era.The conclusion section summarizes and reviews the main research contents and conclusions of this paper,gives policy suggestions on the strategy of OFDI in the new era,analyzes the limitations of this paper,and discusses future research directions.It can be drawn from the comprehensive analysis of this essay that OFDI has become more and more important in the world economic diplomacy nowadays.Thus,the Chinese government should provide policy guidance in a timely manner and formulate more comprehensive institutional guarantees to vigorously promote OFDI.Flexible control of investment location and industrial layout can make OFDI play a more important role in serving the country's overall diplomatic strategy,thereby promoting the Major Power Diplomacy with Chinese Characteristics in the new era.