Research On The Supports Of China’s Official Export Credit For China’s Overseas Investment

Since the reform and opening up in1979and the going-out strategy in2000, China’s overseas investment has experienced the rise, the adjustment, and the redevelopment processes. In the past decades, the overseas investments, to a certain extent, solved the bottleneck of China’s strategic resources, indirectly drove the export of domestic goods and services, enhanced the international competitiveness of China and Chinese enterprises, and increased the investment income of China’s foreign exchange reserves. Therefore, China’s overseas investment is essential to the social and economic development. However, China’s overseas investment is growing rapidly, and the capital bottleneck becomes the biggest constraint of its development. China’s policy-based official export credit, on behalf of the government, provides the concessional financing loans to the enterprises involved in overseas investments, which compensates for the lack of commercial in this field. With the continuous growth of the official export credit, its supports for the overseas investment are not limited to the financing, but also include a full range of consulting services, such as information, negotiation and design. Besides, by means of economic diplomacy, the official export credit fights for a broader space for enterprises’development in the international competition.But the support of China’s official export credit for the overseas investment is still at the initial stage. It’s very important for the official export credit to solve its own problems, deal with the challenges from the external environments, and at the same time to support the overseas investment which is at the growth stage more effectively. It is one of essential conditions that determines whether China’s overseas investment can get the healthy and orderly development. Therefore, under the support of market failure theory, international operation theory, competitive advantage of nations theory, and export subsidy compliance theory, the paper adopts three synthetical research methods combined by theory and practice, by qualitative analysis and quantitative analysis, and by empirical analysis and deductive reasoning to do the study. The paper starts from the concepts, types and characteristics of official export credit and overseas investment, analyzes the development process, present characteristics and supportive effects of the official export credit’s supports for the overseas investment, reveals the internal problems of the official export credit, and dissects the challenges and opportunities from the domestic and international environments. Besides, the paper summarizes and draws on the experience of four typical countries’official export credit and supports for their overseas investment. On the basis of the above study, the paper concludes with a basic framework to improve China’s official export credit and its supports for the overseas investment, including the basic ideas, the basic principles and the support mechanisms involving laws, finance, fiscal finance, insurance and research aspects. At the same time, the paper emphasizes the implementation of related measures, including the norm-development and self-protection of China’s official export credit, the rational distribution of China’s overseas investment, the financing supports for private enterprises, the financing channels of China’s official export credit, risk management and control, and reference and innovation.