The Research On The Choice Of FDI Modes Of Chinese Enterprise

With the development of the economy globalization and modern, large-scale production, the global FDI develop rapidly. FDI has becoming the important way by which national enterprises enhance their international competitiveness and advance in the world economy. At the same time, Chinese enterprises have also begun towards international markets, expanding FDI process.Foreign direct investment could be divided into two broad categories: Greenfield investment and cross-board merger & acquisitions. both ways, from equity structure, can be divided into joint ventures and wholly owned subsidiary. Different investment means to achieve different benefits from the international market, representing different allocation of resources, international degree and the corresponding level of risk, and therefore the choice of investment ways is one of the most important decision-making in the process of enterprise internationalization.Different ways with different investment characteristics, advantages and disadvantages, disadvantages, for enterprises, the choice of suitable foreign direct investment often influenced by their own internal and external factors including mainly their own skills, experience internationalization, enterprise culture, the host country laws, regulations, policies and other factors. The choice between greenfield investment and cross-board merger & acquisitions of Chinese enterprise, from the view of reality, is mainly greenfield investment, but there is a increasing trend year by year of the merger & acquisitions, and from the view of wholly owned subsidiary and joint ventures, the choice is mainly joint ventures. This is related intimately to enterprise with some restrictions including lacking of cross-board merger & acquisitions experiences, funds, and so on. The article set up separately a model of Greenfield investment and cross-board merger & acquisitions, wholly owned subsidiary and joint ventures, so as to analysis the choice from the view of quality, then analysis influence factor of FDI choice of Chinese enterprise one by on, finding out the suitable FDI ways for Chinese enterprise from view of the single factor.