Research On The Motivation Of Chinese Direct Investment In Germany

Under the background of the international division’s strengthening and global value chains’ upgrading, more and more Chinese enterprises to broaden the international perspective and join in the rank of foreign direct investment. Thus, on the stage of foreign direct investment, the significance of China is increasingly prominent. With the Innovation Driven Strategy and Chinese Manufacturing 2025’s double promotion and with the link to German Industrial 4.0, considerable Chinese enterprises set off a wave of German direct investment boom. However, Chinese enterprise of German direct investment blindness and the problem that investment motivation is not very clear are also existed. What’s more, for the present stage, a theoretical system of Chinese OFDI experience to Germany or other developed countries are not be explained by the traditional theory of foreign direct investment. So, it is of great significance and practical significance to explore the motivation of Chinese direct investment to Germany.Firstly, this paper hackles the Station Localized Technological Capacities as well Technology Innovation and Industry Upgrade which can interpret the motivation of developing countries’ OFDI to developed countries, the theory of Chinese OFDI and the research that scholars did at home and abroad. Then, through present situation of Chinese enterprises’ choices in location, industry, and models in OFDI and with the case of Ningbo Junshengcompany’s acquisition, Shenyang machine tool company’s acquisition and Fenmei company’s Greenfield in Germany, the paper analyzes the main motivation of Chinese OFDI in Germany.Based on the case analysis, this paper makes an empirical analysis. Firstly, the paper uses the factor analysis method to reduce the dimension and make the correlation of variables to be removed, which can explain the motivation of China’s direct investment in German and the impact of variables to investment flows, such as German GDP reflecting German market, the proportion of R&D investment of GDP to reflect the technique of Germany and foreign open reflecting German investment policy of Germany. Then, the paper establishes the multiple linear regression models to verify whether there are three kinds of investment motivation and analyze the influence degree of each factor on the investment flows.Through the system analysis, draw the conclusion: First, Chinese enterprises holds market seeking motivation to occupy the market and expand to other European countries,and which aiming at choosing the location with active market, developed infrastructure,improve financial services, with superior geographical position location to carry out directinvestment. Second, Chinese direct investment in Germany are mainly concentrated in the electronics and semiconductor industry, mechanical engineering and other high-tech industries, the purpose of OFDI is studying and absorbing the advanced German technology, manufacturing technology and management experience, etc., and then by the reverse return, realize the upgrading of domestic technology, with technology seeking FDI motivation and the empirical results show that technology seeking OFDI motivation for Chinese direct investment is the main motivation in Germany. Third, the impact of China’s direct investment location in Germany is an important factor for the policy preferences. In order to avoid reasonable access to the European market risk and to ease the financial pressure, Chinese enterprises often use national treatment and varies from state to state preferential policies for investment that Germany gives. So Chinese company has policy oriented motivation to choose investment location and model in Germany.Finally, the corresponding countermeasures and suggestions are put forward from the macro and micro perspectives respectively. From the macro level, China should promote the signing of a bilateral investment agreement, provide convenience for Chinese enterprises to enter the German market; strengthen the protection of intellectual property rights, encourage enterprises to invest in the high-tech industry in Germany, boost the upgrading of industrial technology; increase support policy of German direct investment in China and ease the pressure on enterprise funds, from the point of view of the home country to strengthen policy guidance. From the micro level, Chinese enterprises should actively participate in international investment market, with the highly efficient market environment of Germany to expand market share; increase investment in research and development, actively to invest in the high-tech industry to obtain high end technology,boost domestic technological upgrading, as well as improve the ability to innovate by their own, establish brand awareness, build competitive brands; to bilateral investment promotion agencies seek investment consulting, to policy guidance for investment incentives.