Manufacturing Enterprises In China Foreign Direct Investment Strategy Research

Foreign Direct Investment (FDI) is a pop event in our country's economy. In the last twenty years, with the effort from Chinese government and enterprises, the scale and performance of Chinese enterprises' FDI experienced a significant improvement. This paper focuses on analyzing the FDI strategies of Chinese manufacturers. The first part states the current situation and problems in Chinese enterprises' investing abroad. Based on the analyzing of FDI theories both of overseas and domestic, the second part points out that, according to the different views on the enterprises' predominance, FDI could be divided into two types: one is Predominance Exerting FDI and the other is Predominance Breeding FDI, and also indicates that Chinese enterprises should focus on the Predominance Exerting FDI in short order, then strengthen the Predominance Breeding FDI in the future. The third part analyzes the current situation of Chinese manufacture industry and specialties of main investing areas in the world, and indicates what industries and area these two types of FDI should choose. Accordingly, the fourth part analyzes and compares the investing modes and main bodies, and indicates how to choose appropriate modes and main bodies for both types of FDI. The whole paper is arranged according to such route.