Study On The Restrictive Factors Of Private Enterprises Foreign Direct Investment

In recent years, the quantity and quality of the Foreign Direct Investment of private enterprises in our country showed a significant upward trend, and played a leading role in China’s Foreign Direct Investment. The rising power of private enterprises and taking the long term enterprise strategic,private enterprises actively take the initiative to explore effective ways to participate in the cooperation and competition of the world economy.They take full use of the effective combination of the two markets at home and abroad become the main force in the world market.The speed of private enterprises to expand overseas markets gradually accelerated after the financial crisis. Private enterprises gradually become the main force of Foreign Direct Investment of China. The strength of private enterprises gradually increase.According to the ministry of commerce statistics, the size of private enterprises to expand overseas market has exceeded the utilization of foreign capital, and then become the capital exporting countries. The role of private enterprises in China’s foreign direct investment has become more and more significant. Private enterprises of foreign direct investment growth rate significantly exceed the growth rate of state-owned enterprise overseas direct investment in 2014. Private enterprises gradually towards the direction of globalization, but also indicates that the economic development of our country gradually becomes mature.Compared with the state-owned enterprises, private enterprises has a great deal of flexibility,state-owned enterprises have passive investment, give priority to with the interests of the whole country, the private enterprises investment has the initiative, give priority to with individual interests, and the investment to diversify gradually, which makes private enterprises have a bigger development space. Due to the significant status of private enterprises in China’s overseas direct investment, but the development of private enterprises in China is restricted by many factors. So countries in the article “new thirty-six”put forward to encourage private enterprises to develop international operation, in order to make private enterprises go out better. We have to analyze these limiting factors and put forward specific recommendations that make private enterprises toward a healthy direction. Therefore, in such a crucial period that the national Thirteen Five planning, the research of constraints that the current our country private enterprises to expand overseas market is of great practical significance.Private enterprises Foreign Direct Investment has its unique advantages,market-oriented make the investment pay more attention to efficiency, and easy to be accepted by the other countries. Private enterprises are generally small scale to quicklyadapt to the host country’s market demand. At the same time, we must realize that there are a series of drawbacks of private enterprises overseas investment, such as financing difficulties, the poor ability to resist risks and small scale of it. Private enterprises need to give full play to their advantages, disadvantages, rational and scientific overseas investment.In this dissertation firstly summarizes the relevant theories of foreign direct investment in developing countries, collecting the related literature at home and abroad about foreign direct investment, and then understand the domestic and foreign scholars about the breadth and depth of research on foreign direct investment. With the comprehensive understanding of the present situation and the trend of the private enterprises Foreign Direct Investment,the study analysises its restrictive factors by inside and outside aspects respectively conducted a quantitative research and qualitative research, and more comprehensively and deeply analysizes through the effective combination of both quantitative and qualitative.Among them, for these internal factors of quantitative, the dissertation use SPSS software on the correlation analysis to study of internal factors. For external restricting factors of research, it will be compared with state-owned enterprises, analysisng private enterprises to expand overseas market external restricting factors in the quantitative. At the same time, to test the above empirical results, this dissertation analysis leap group case as the representative of manufacturing industry, summarizing the experience of Foreign Direct Investment and providing reference basis for other private enterprises. Finally, the dissertation puts forward some suggestions and then provides theory basis and practical experience for Foreign Direct Investment.The new leadership pay more attention to private enterprises Foreign Direct Investment. The party’s18 put forward to built benefit population of a well-off society by2020. This period focus on deepening reform and opening up, accelerate the economic transformation and put forward to encourage private enterprises to expand overseas markets.Therefore, in view of the private enterprises formulate and implement of a series of encouraging policies, for private enterprises to expand overseas markets provides a good external conditions. The ministry of commerce put forward the management model about“the record is given priority to the approval is complementary”, simplify the procedure of overseas investment, shorten the work time, improve the efficiency, for private enterprises to expand overseas markets opened up a green channel.In recent years, in foreign investment approval procedures and financial support promote private enterprises overseas investment, government implement the reform. Some private enterprises should be well prepared for growing number of trade protectionism since the financial crisis. In addition, regional economic development is put forward suchas the “new silk road economic belt”and “Marine silk road” in the 21 st century, providing a good environment for the private enterprises overseas management.