China's Direct Investment In Africa Study

Since the open policy carried into execution, Chinese outbound direct investment has made great progress. It is reported by the web set of State Administration of Foreign Exchange that《The statistics journal of Chinese outbound investment in 2006》published by Department of Commerce, National Bureau of Statistics and State Administration of Foreign Exchange in 14^th, September 2007 showed that Chinese outbound direct investment cost was 21.26 billion USD, ranked at the 13^th in the whole nations around the world. In China more than 5000 invested bodies established almost 10,000 enterprises abroad in 172 countries (areas), the outbound direct investment cost amounted to 90.63 billion USD.Outbound direct investment is an important part in the basic principles of Chinese open policy More than 20 years past since open policy began to execute, the value of Chinese outbound direct investment has kept increasing and the scale has kept enlarging, with the strengthened power of Chinese outbound investment, outbound direct investment plays an important role in the development of Chinese economy, expansion of international market, and exportation of mature technology. Africa keeps a well long-standing relationship with China in the aspect of politics and economy, and Africa gradually becomes one of the capital resources for China and a large potential market for China. All that mentioned above exists a profound meaning in meeting the demand of Chinese resources and energies and in expanding Chinese international market. However, it is a bit late for China to invest in Africa, and it is just an initial phase but with a fast developing speed. Nowadays, China has been the third largest invested country in Africa.The paper mainly discusses Chinese investment in Africa. The first part, the paper generalizes the current situation of the investment in Africa, and analyzes characteristic of the direct investment in Africa. The second part of the paper expounds the theories of the industrial investment selection. The third part of the paper analyses the environmental factors and target market of investing in Africa. Firstly, the paper explains the environmental factors from the viewpoint of politics, economics, law and nature, and then divides the target market into three parts. The fourth part of the paper mainly discusses how to choose the industry when investing in Africa, mainly analyzes from the aspects of planting and processing industry, stockbreeding and processing industry, construction industry, mining and IT industry. The last part of the paper puts forward some advices on investing in Africa from many aspects in order to enlighten the investors.