Study On China’s Direct Investment To SADC

With economic globalization and regional economic integration continuing to move forward, FDI in the world economy and national economic exchanges play an important role. At present, in the background of China’s rapid economic development, the upgrading of industrial structure and shrinking external demand, Chinese enterprises are having multiple pressures of shortage of resources, production overcapacity, rising production costs, the pressure of reality make Chinese enterprises have to speed up the pace of FDI.The economics of SADC is higher integrated than other parts of Africa, which have cheap labor, abundant mineral resources, vast consumer market and continuous improved infrastructure, and gradually become ideal investment destinations for China’s enterprises participating in international competition. In recent years, SADC is more stable in politics, as well as more in economic growth. The countries implemented a series of preferential policies to attract FDI; the investment environment has been improved. In2008, the FTA of SADC officially was launched and brought greater opportunities for foreign direct investment. Since2000, despite the international financial crisis, China’s direct investment in SADC is still at a faster rate year by year.Study of China’s direct investment in SADC has important significance. First, SADC is a regional organization which have higher degree of economic integration in Africa, its Member States have relatively high level of economic development, and China has become SADC’s biggest trading partner. Therefore, the study of China’s direct investment in SADC has very important practical significance; Secondly, the study of China’s direct investment in SADC for Chinese enterprises provides some strategic recommendations; Finally, the study of China’s direct investment in SADC for our government to develop, adjust direct investment policies provides a reference.This dissertation includes six aspects:(1) This article briefly describes the research background, significance, relevant literature, research methods, structural arrangements, innovation and Inadequacies;(2) Discussing the development process, current situation and the main problems of the China’s direct investment in SADC;(3) From a political, legal, economic, social-cultural and natural perspective, the SADC’s investment environment is analyzed in detail;(4) For the motives of the FDI of the Chinese enterprises in SADC, this dissertation has an in-depth analysis;(5) Discussing in detail Chinese comparative advantages about direct Investment in SADC;(6) From the perspective of the enterprise and Chinese Government, this dissertation puts forward to some strategy and recommendations to promote direct investment in SADC.Innovation of this dissertation:(1) From2007to2010, the dissertation explains tentatively why the flows elasticity of China’s direct investment in SADC becomes larger. First, the fact China’s largest bank ICBC acquired South Africa’s Standard Bank in2008which is the biggest bank in Africa, has greatly increased the investment flows to the region; Second, the international financial crisis affected investor’s confidence, led to a plunge in investment flows; Third, as the world economic recovery and an increase in the investment of China-Africa Development Fund, the China’s direct investment flows in SADC have rapid growth in2010;(2) This dissertation analyzes the SADC’s investment environment in the third part by factor analysis;(3) In the fourth part, preferential measures by which China’s investment incentives and SADC attracts foreign investment is summed up as "dividend policy"; In the investment recommendations, the dissertation suggests that government establishes the SADC investment special Fund on the basis of China-Africa Development Fund. Inadequacies:Missing data weaken conviction of this dissertation.