Status Quo And Prospects Of China's Direct Investment In Iran

With the development of economic globalization and regional integration,international mobility of capital elements have become more frequently.International investment have impacted on the global economy more obviously each day and occupied an important position in the economic activities.In this context and after 20 years of development,the foreign exchange reserves of China has already overtaken Japan.Now the foreign exchange reserves of China has become the largest in the world and also maintained a high growth rate.At the same time,China has accumulated and possessed the advanced technology and experience.The industrial structure of China has transformed from initial stage to senior stage.Now China has become an important world economies.With the development of China's economy development and industrialization,energy supply can not meet demand seriously.Iran is rich in energy,especially the large reserves of oil and gas.Now Iran has become the goal of access to overseas energy region for China.In addition,through the implementation of Iran's 5-Year Plan,the free trade zone has been established;the regulations ofInvestment have been formulated;the business of upstream oil has been opermed to foreign investors.One hand Iran has strengthened the economic and trade cooperation with Asia and EU.On the other hand Iran has introduced funds and technology from Chinese,Japanese,South Korea,France,Italy and other countries.Because of the economic construction and energy development,Iran has developed rapidly.Therefore,China's investment in Iran can promote economic strength of Iran and guarantee the sound development of China's economy.In this paper,China's direct investment in Iran could help us to understand the context,the status quo,the Significance and the problems of China's investment in Iran.At the same time,we can understand the favorable and unfavorable factors for Chinese investment to Iran.So this paper provide reference for the China and Chinese enterprises to develop a reasonable investment strategy in Iran.In this paper,first of all,we analyse the context of China's investment in Iran from the international political environment,the international economic environment,historical factors and basic national conditions.The results show that indicates that cooperation between China and Iran is in line with the needs of mutual interests and the laws of economic development.Then,using the literature method,the chart method and Comparative method,we analyse the status quo of China's direct investment in Iran,such as the scale of investment,regional distribution,industry distribution and the mode of investment.In addition,we analyse the major projects,Key industries and key areas.Thirdly,using qualitative analysis and quantitative analysis methods to analyze future prospects of China's direct investment in Iran,we focuse on the favorable factors and negative factors for the investment.On this basis,we predict the key field of investment,investment in the region,investment etc and form quantitative assessment of investment prospects.In the end,we conclude the following questions:how to broaden key field;how to seek the space of development for private sector and private enterprises in China;how to deal with a new round of economic sanctions against Iran and so on.Based on the above analysis,this article concludes:1.The status quo of China's investment in Iran has the following characteristics:First,China's investment in Iran started lately.But now,it has developed fastly and stably with a little fluctuations.Compared with other countries,China has become one of the largest investor in Iran.Compared to investment in Asia and the whole world,the size and proportion of China's investment in Iran is still small and low.Second,With Tehran as the core of the X-shaped frame rail axis zone has become main region for China's industrial enterprises.With Khuzestan as the core of the South West Province and with Mazandaran as the core of the Caspian Sea region has become important investment region for developping oil and gas.Third,the key areas of China's investment in Iran are still the oil and gas industry,water resources and hydropower and transport infrastructure.Investment in manufacturing,engineering,communication of information and agricultural research and development is still at initial stage.Fourth,For China's direct investment in Iran,state-holding enterprises are the main force;Joint venture is the main form including the purchase of the right of resource exploitation,engineering construction,technology transfer,equipment suppliers,factories,human resources training,etc.2,The prospects of China's investment in Iran may show the following characteristics:In the future,the investment potential and opportunities,investment risks and competition will intertwine.Oil and gas industry,the mining,water conservation project and transportation are still the key fields of China's investment in Iran.Region of China's investment in Iran will focus on following areas:with Khuzestan as the center of the south-west area(oil and gas industry);with Tehran as the center of the the X-shaped frame rail axis zone(processing industry,integrated industry);Karen River Basin(Khuzestan Province is the key area for investing in water conservancy and hydropower);Tehran,the central,Qom,Khuzestan,Bo Ai Wei Ahmed-Sheikh,Bushehr and other provinces(traffic and facilities);Kerman,East Azerbaijan province(developping of mineral resources).In addition,the state-owned enterprises are still the main investor and the joint venture is the main form of investment.