Obstacle Research Of China's Reverse Outward Foreign Direct Investment In Developed Countries

After accessing to WTO,China began to actively integrate into the tide of global economy,foreign direct investment developed rapidly,especially China's OFDI.According to the "Statistical Bulletin of China's Outward Foreign Direct Investment" issued by Ministry of Commerce,China's outward foreign direct investment flows increased rapidly from $ 2.7 billion in 2003 to S 123.1 billion in 2014.in 2014,the flows and stocks of China's foreign direct investment accounted for 9.1%and 3.4%of the world respectively,ranked the third and the eighth worldwide.The investment industry covers all sectors of the national economy.In 2015,China's foreign direct investment reached S 118.02 billion.increased by 14.7%,and covered 155 countries and regions worldwide.China has become a large investor in foreign direct investment,and China's foreign direct investment has entered a new phase.China's outward direct investment in developed countries began late but developed quickly.The reverse investment began to explosively grow from 2008,and the total reverse OFDI proportion increased from 5.6%in 2008 to 15.3%in 2014,and there will be more room for growth in the future.As investing to the developed countries has a spillover effect in advanced technology and management experience,which can improve China's manufacturing technology and added value,during China's thirteenth Five Year Plan of economy when china seeks structural changes,investing in developed countries will be very important.So it needs to be paid enough attention for the relevant government departments and enterprises.But we see that China's direct investment stock in developed countries accounts for less than one-fifth of China's total foreign direct investment even in 2014 when China has the largest FDI stock in the developed countries,and obviously it does not match the status of China as the world's third largest foreign direct investor in the world.And compared to the direct investment in developing countries,China's investment in the developed countries is more vulnerable to the failure of investment because the lack of ownership.According to the statistics of the Ministry of Commerce,only one third of China's overseas mergers and acquisitions are profitable or in balanced state,that is,two-thirds of China's overseas investments are in failure or loss.The failure of investment not only brought huge losses to these enterprises,but also dealt a blow to the enthusiasm of go-out enterprises.In this context,in this paper,I mainly analyze the obstacles Chinese enterprises encountered when investing in developed countries from the perspective of entry barriers and investment risks with the method of empirical.First,I study the current situation of China's reverse investment with the method of theoretical research;Then I study the influence mechanism of entry barriers and investment risk to China's OFDI;Next,I analyze these influence factors with the method of empirical research;In the last,I put forward opinions and suggestions from lowering the barriers?dispersing the risks and speeding up building BIT with the developed countries three aspects which based on the results in order to improve the efficiency and effectiveness of China's direct investment in developed countries.The results show that,from the point of entry barriers,technology distance has a significant inhibition effect and culture distance tend to promote China's foreign direct investment,system distance don't have any effect on China's direct investment in developed countries;.From the point of investment risk,political risk would inhibited China's direct investment in developed countries significantly,while the national economic risk has no impact on China's foreign direct investment.Besides,the GDP of the host countries and RMB exchange rate have significant promotion effect for China's OFDI.The innovation of this paper is that I mainly explore the Chinese reverse investment in developed countries rather than the traditional forward investment;in research content I take both entry barriers and investment risks into consideration;and in research method I conducted sub-regional and the sub-time method for deeper exploration.The drawback is that due to so many factors involved in this paper,while I try to make the article more comprehensive,still inevitably resulting in insufficient mastery of detail,in addition,the paper's analysis is inevitably inaccurate due to my limited capacity.