A Study On China's Direct Investment Determinants To Other BRICS Countries

Today,economic and political pattern in the world is experiencing a historic change stage.Under the background of the weak international economic recovery,the fundamentals of Chinese economic development maintain steady, the international competitiveness of multinational companies and the endogenous motivation of "going out" continued to improve.In this context, China accelerate the integration of superior resources across the globe inclusively.Especially,to seek development and promote reform,we cooperate with the emerging economies frequently.Currently,BRICS-the cross-regional cooperation organization consisted by the emerging economies of China, Russia, India, Brazil, South Africa,play an irreplaceable role in promoting the sustainable development of the world economy, reducing the threat of extremist forces, as well as maintaining the balance of international political structure.In the future,China should increase direct investment cooperation with other BRICS to excavate the potential of funding, technology, energy, labor and other aspects,continue to explore new paths of cooperation with other members,and to establish a stable bilateral and multilateral investment cooperation partnership.In the framework of theoretical and empirical factors of foreign investment,this paper regulate analyze the situation the main features of China's direct investment to other BRICS countries based on 2004--2013 China's direct investment to Russia, India, Brazil, South Africa.Then,I analyze the host factors of influencing OFDI flow,such as economic environment, natural resources, science and technology level, the political environment and policy factors.By using multiple regression model to analyze the factors of influencing China's OFDI flow to other BRICS from 2004-2013.Finally,I conclude that the host country's energy resources, science and technology, the amount of bilateral trade and economic freedom impacting our OFDI significantly.Based on this conclusion,I put forward some strategic advice on how to promote Chinese direct investment to other BRICS on the perspective of our government and multinational companies finally.On the one hand,our government needs to speed up the implementation of the trade and investment agreements with other BRICS,and actively promote the cooperation projects of infrastructure construction, production and cooperation in areas such as energy security.Fight for more investment facilitation for Chinese enterprises,and to achieve diversification of foreign investor.On the other hand,when Chinese enterprises "going out", it requires a combination of its comparative advantages and make full use of policy and financial support granted by the State,in order to avoid investment risks better.At the same time, companies need to take localize operations,reduce friction with local businesses and government agencies,to enhance the cross-regional, cross-cultural synergy.Occupy high value-added positions in the international industrial chain.