Research On Problems And Countermeasures Of Chinese Enterprises' Direct Investment In Kazakhstan

With the development of economic globalization,more and more countries choose to open the door.As a result,direct investment can be used as an important way to promote the country's socio-economic development.Since the year 1992,firms of China began to trade with its neighbor Kazakhstan,in the way of direct investment or others.In the sense of firms from china,many firms have the ability to develop through direct investment.Some firms have abundant of fund enough to invest in a foreign country,some firms are supported by the government,and some firms have the necessity to quest for resources or a larger market from other countries.In summary,they want to maximize their profits by investing in foreign countries.On the side of Kazakhstan,it is a pleasure to see that it is our neighbor,and it is convenient to trade with each other.Secondly,Kazakhstan is not a developing country,that is to say,the market is far away from saturated and Chinese firms have the opportunity to invest in Kazakhstan.Thirdly,the government of Kazakhstan are always encouraging foreign firms such as firms in china to invest in their country,then firms in china can make use of the policy and it may be easier to enter Kazakhstan's market.As a result,Chinese firms have grabbing some market share in Kazakhstan.However,there seem to be some problems during the process.The first one,although the size of Chinese firms in Kazakhstan can be ranked as the forth place in the world,the amount of investment in Kazakhstan only one over ten of the Netherlands.That is to say,compared with Netherlands,Chinese firms must improve the scale of investment in Kazakhstan.Secondly,as to the speed of Chinese firms' investment in Kazakhstan,it fluctuate wildly reflecting a lack of confidence when Chinese firms are deciding whether to invest in Kazakhstan or not.Thirdly,firms from china that have entered in Kazakhstan are focusing on the second industry such as mineral industry,so the industrial structure is not balanced.In addition,they are apt to locate their factories in the area which has plenty of resources or has been developed to a degree.Summarize from the analysis above,this paper tries to offer some advices to the firms have been or want to invest in Kazakhstan,hoping that our two countries can trade with each other smoothly and pursue common development in the future.