The Empirical Analysis Of The Motivation Of Chinese Outward Foreign Investment To Europe

China’s foreign investment is becoming more frequent since 2008, with 18% annual rate of rapid growth, and provides a large amount of information and case study for the theoretical research. The EU, as the world’s largest economy, is also China’s major trading partners. Though the investment to EU from Chinese enterprises account for only 6%, the growth is tremendous fast, and challenge the view of the traditional investment theory that investment flows to developing countries from developed.By means of traditional investment theory, the theory of investment in developing countries and China investment theory, the paper studied the China investment in EU, which based on the view of investment motivation, combining both theoretical status quo and empirical aspects. This paper based on the improved investment gravity model, conducted a regression test on China investment trade data in EU and Institutional factors of EU 27 member states between 2003 and 2012 and conclude that the main motivation of China invest in EU is expand the EU market and gaining natural resources form EU. According to the problems which existing in the status quo including distributed situation investment forms and motivation of China’s investment in EU, proposes corresponding strategies that we should optimize the entry mode and disclose enough enterprise information to improve the success rate of foreign investment in EU.