A Study On The Strategy Of Investment Of Southeast Asian Ethnic Chinese Capital

For the last 30 years, the growth of China’s economy has got attention of the world. At the same time, other developing Asian countries’ economies also have a rapid development. With the rapid development of Asian economy, the Ethnic Chinese capital is gradually becoming strong. Ethnic Chinese multinational companies’ investing activities are changing from regional phenomenon into a global phenomenon. The Chinese mainland has been one of the important choices of the Ethnic Chinese foreign investment. About more than half of the foreign investment is from Ethnic Chinese in Chinese mainland. Foreign direct investment, especially Chinese overseas direct investment has injected strong vitality into China’s economy. As an important part of international investment, direct investment of Chinese overseas in Chinese mainland has caused wide attention of academia.CP Group is one of the representatives of successful Ethnic Chinese enterprises that invest the Chinese market. From the beginning of reform and opening up, CP Group entered into the Chinese market. Due to the appropriate choice of the investment strategy, its products eventually made a good effect. And CP Group provides advice for other enterprises that intend to invest in China market. This paper studies the formation process of Southeast Asian Ethnic Chinese capital and investment in China. Based on the theory of international production compromise, this paper analysis CP Group’s investment strategy. According to SWOT analysis, CP Group put forward the strategic objectives of the investment. This paper puts the focus on analysis of the strategic choice.Other multinational companies need to consider internal factors and external factors to make an appropriate choice of investment strategy. When they choose the investment strategy, multinational companies should consider the needs of the enterprise internal organization and the influence of the external environment and analyze China’s government policy and the needs of the investment industry, as well as the level of local economy and natural environment. Meanwhile multinational companies also should have a thorough understanding of Chinese culture and consumers’ habits. And with quality advantages and keen to public welfare undertakings, multinational companies can establish a good brand image.