Of The Entry Way Of The Chinese Foreign Direct Investment

With fast economic development, the Chinese international economic cooperation has been broadened and deepened. FDI as an important part of Chinese participation in the cooperation is developing rapidly. Chinese FDI has covered 174 countries and areas. Although most of the investment goes to developed countries, there is still a mount of investment in transitional and developing countries, especially in Eastern Europe and Latin America where economic recovering rapidly. China begins the international economic cooperation with Eastern Europe relatively earlier. The total investment of China–Eastern Europe grows rapidly after the economic reconstructuring in Eastern Europe. China started investment in Latin America relatively late, but the local investment of Chinese enterprises has been growing rapidly since the late 90's. Latin America has become one of the major areas for China's investment.There are two main methods for FDI in the target country, namely Greenfield Investment and M&A. The way enterprises choose in FDI can be affected by a series of internal and external factors, including host country, industry and enterprise. Firstly, on the original study this paper observes these factors by quantitative and statistical analyses. From above analysis we can draw a conclusion that the host counrty factors include the GDP, foreign capital policy and the culture gap with China; the business factors include inceresing speed, natural monoply, the enterprise factors include enterprise-scale and ownership. Then, based on above factors, the thesis compares the entry way in Eastern Europe and Latin America.