The Economic Effects, Obstacles And Countermeasures Of China 's Direct Investment In

Nowadays European Union members are applying a financial retrenchment policy.While investment activities in EU is slowing down and liquidity of capital market inEU is in tension, attracting outward direct investment will be greatly beneficial forpromoting economic growth and easing employment pressure for European Union.China is the second largest trade partner of European Union and one of the maindestination of FDI of EU. But the scale of China’s OFDI to EU doesn’t conform to thehuge trade and economic exchanges between China and EU, which demonstrates thatthere is great potential to be exploited in China’s direct investment to EU. Therefore,it will be an important issue to further strengthen China’s direct investment to EU inChina’s going-out strategy.The paper will be made up of an introduction and five main chapters. The firstchapter will be a literature review of China’s OFDI to other countries and especially toEU members. The second chapter will analyze the current situation and achievementof China’s FDI to EU from the perspectives of investment scale, industrial distribution,geographic distribution and main investors. The third chapter is a theoretical analysisof China’s OFDI. The fourth chapter is an analysis of the economic effect of China’sFDI to EU. The research of this paper finds out that China’s FDI to EU have distinctpositive effect on both China’s industrial upgrade and China-EU trade relations byusing grey correlation model and VAR model. The fifth chapter and the sixth chapterdiscuss the obstacles and policy suggestion Chinese enterprises meet in investing inEU.