Chinese Private Enterprises, Foreign Direct Investment In Competitive Advantage

According to the general theories of the developments of multinational companies (MNC) and small/medium-sized enterprises, and the general theories of FDI from developed country and developing country, this thesis explores the current status of FDI from China's private enterprises, the driving forces behind this trend, and the capabilities of such enterprises in carrying out such investment activities. Its conclusion is that the involvement in FDI activities is an inevitable stage of development that China's private enterprises will go through.As a focus, the thesis analyses the competitive advantages of China's private enterprises'FDI, from the angles of both comparative advantages and absolute advantages, including Monopoly Advantage, Location advantage, Industrial Clusters Advantage, Cost Advantage, Miniature Economy Advantage, etc. Using the information of real cases in this field, it also examines the difficulties and obstacles that China's private enterprises have encountered in carrying out FDI activities.In the final chapter, the thesis analyses the internal and external problems that China's private enterprises are faced with and, based on these problems, further suggests certain methods that will possibly help improve the competitiveness of China's private enterprises.