A Study On Foreign Direct Investment Of Chinese Private Enterprises

Under the background of economic globalization, Chinese private enterprise, as a very important part of the "Going-out" Strategy, has developed step by step in foreign direct investment. For more and more private enterprises are getting involved in international market for a new climax in business, the study on Chinese private enterprise's foreign direct investment will be very significant for private enterprises'practice.Based on theories of FDI, combined with the Chinese private enterprises practice on foreign direct investment, analyzed and summarized the problems in FDI of private enterprises. Then, against the problems, focused on the strategy at the private enterprises'FDI and analyzed with theory and substantial evidence.Firstly, expounded the private enterprises'FDI development process in a view of development, and according to the theories about developed and developing countries'FDI, to analyze the motive, condition, characteristic and main existence problem in Chinese private enterprises'FDI.Secondly, through the analysis of the strengths, weaknesses, opportunities and threats in foreign market that Chinese private enterprise may meet, and using the SWOT analysis tool to get the strategy matches. Then some advices for our government and the enterprises are giving. The government should enlarge the support and protection for private enterprise's FDI. And the enterprises should exert the advantages, overcome the disadvantages and strengthen management to promote the competition ability of overseas business.Thirdly, according to the existence problems in the foreign direct investment by private enterprise, such as the location choice, the industrial type and the entry mode, analyzed the strategies choice in location, industrial type and entry mode with theory and practice. When explain the choice of the location, the paper do main research in the affection factors and means for FDI. The research concluded that the location choice of Chinese private enterprises' foreign direct investment, which choose the developing country as the main object country and the developed country just as a supplement, is a reasonable strategy. For the type of industry, the paper researched on the four basic criterions of industry choice, and got the main idea that the private enterprise should according to the dissimilarity targets of investment carry on an industry choice. Generally speaking, taking the traditional advantage industry as a focal point, and improving the investment on technique industry and service industry. For the mode of entry of foreign direct investment, we contracted the merit and shortcoming of the entry modes, according to the affect factors inside and outside on the FDI, and the major conclusion is that the choice of restructure or M&A integration depending on the condition and motive of the enterprise. The other conclusion is that choosing more joint venture mode for techniques and scattering the risks. Some of the enterprises own the high technique and real strength with the economic power can choose the wholly-owned mode.Finally, based on analysis of the FDI process and strategies choice, we make a horizontal comparison between WANXIANG and LIFANG, and proof the conclusions that mentioned in this paper by analyze and conclude the successful mode of foreign direct investment of the two companies. Furthermore, we believe that these analyses can provide some useful information to help the private enterprises to go global.