| In the beginning 2000, Chinese government proposed the "going out" strategy, which brought China's outward FDI up to a high level of national developing strategic importance. The report of the 16th CPC National Congress points out that implementation of the strategy of "going out" is an important measure taken in the new stage of opening up. The majority of China's outward FDI is based on the internationalization of the enterprises. Enterprise internationalization is the micro foundation of one country's development of outward FDI. With the improvement of internationalization level, more and more Chinese enterprises will choose "going out" in way of FDI. The internationalization process of the Chinese enterprises grows along with the development of the reform and opening up to the outside world, but is still in the initial developing stage at present. The report of the 16th CPC National Congress also points out that we should encourage and help relatively competitive enterprises with various forms of ownership to invest abroad in order to increase export of goods and labor services and bring about a number of strong multinational enterprises and brand names. This means we should accelerate the progress and improve the level of the Chinese enterprises' internationalization.Under the above mentioned background, this paper attempts to analyze the current situation, characteristics, existing problems and future trends of Chinese enterprises' FDI during their internationalization progresses on the basis of both FDI theory and internationalization theory.The thesis contains four chapters. The first chapter is the theoretic foundation of the paper. The first part consists of the introduction and a brief comment on some of the major FDI theories which include the eclectic theory, marginal industry expansion theory, small-scale technology theory and the technology localization theory. The second part chooses two of the internationalization theories-the Uppsala modeland the inward and outward internationalization model-to introduce.The second chapter is the analysis on China's current outward FDI situation. The development of China's outward FDI, which shows an obvious characteristic of developing country's FDI on an early stage, can be divided into four stages since the beginning of reform and opening-up. The analysis concentrates on the structure of the subjects, scale, modes, incentives and ownership advantages of China's outward FDI.The third chapter focuses on the internationalization of Chinese enterprises. The internationalization of Chinese enterprises is still on a primitive level. The inward internationalization is the foundation for their outward internationalization. As for the foreign market entry mode, we select the Chinese household appliances industry to analyze. The choice of entry modes can be examined from a hierarchical perspective. The first level of hierarchy is between equity and non-equity entry modes. After deciding on whether equity or non-equity modes to select, which specific mode within equity or non-equity to choose should be further considered. This perspective centers on whether equity investment is involved, which is main concern of the Chinese household appliances industry's foreign market entry mode selection. Major factors that influence the entry mode selection of the Chinese household appliances industry are production cost, psycho distance and business operation capability.The last chapter addresses the problems and obstacles of Chinese enterprises' internationalization, and puts forward corresponding suggestions. First of all, establishing modern enterprise system and improving corporate governance is the premise of enterprises' internationalization. Secondly, to improve the internationalization of Chinese enterprises, there should be proper industry, location and entry mode strategies. Finally, the government should take actions from the flowing two aspects to accelerate the internationalization of Chinese enterprises: promotion and governance. |
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