Study On The Location Choice Of Outward Foreign Direct Investment For China’ Mining Industry

As the acceleration of the economic globalization,both China’s demand for mineral resources and the independence on the foreign mineral resources are increasing.This contributes to China speeding up its outward foreign direct investment on mining industry.Such investment has made great progress,but also some great challenges.Although many academic researches on the location choice of outward foreign direct investment were made,there are no systematic researches on the location choice for the mining industry.The location choice is a priority in outward foreign direct investment on mining industry.This industry needs great input capital.An inappropriate investment location is likely to lead to investment failure and affects the investment profit.This paper focuses on the location choice of outward foreign direct investment for China’s mining industry,and has certain theoretical and practical significances.Firstly,this paper introduces the relevant background and theories of outward foreign direct investment for China’s mining industry,and illustrates the importance of the location choice of outward foreign direct investment for China’s mining industry.Then this paper analyzes the motivation of outward foreign direct investment for China’s mining industry from the perspectives of both the necessity and feasibility,and summarizes its basic facts from five angles including investment scale,investment minerals,investment location,investment patterns and investors.In addition,this paper analyzes and summarizes the existing problems of the location choice of outward foreign direct investment for China’s mining industry.Secondly,this paper selects 19 host countries and 9 factors that influence the location choice of outward foreign direct investment for China’s mining industry.The factor analysis method is used to analyze the location choice and the investment environment of the host countries will be classified according to the empirical results.Then this paper takes Australia as an example to make a detailed analysis according to the extracted common factors.We draw conclusions from the research of this paper:first,it is advisable for China to carry out the investment and continue to increase investment in Australia’s mining industry.Second,business environment factor has the biggest influence on the location choice of outward foreign direct investment for China’s mining industry during the three factors.Therefore,we should put business environment factor in priority when evaluating the investment environment of the host country’s mining industry.Third,the 19 host countries can be classified as excellent,good,qualified and unqualified according to the merits of regional environment.Finally,this paper gives some specific advice for the location choice of outward foreign direct investment for China’s mining industry according to the study conclusions.