A Study On The Environment,opportunities And Risks Of Investment In Kazakhstan For Chinese Iron And Steel Enterprises

Currently,the continuous expansion of production capacity and the limited growth in demand in the domestic market make Chinese iron and steel enterprises are facing greater challenges.In order to fully utilize its own production capacity and achieve effective allocation of operating resources,more and more Chinese iron and steel enterprises have begun to shift their business horizons from a single domestic market to an international market.With the economic transformation and upgrading,and the steady progress of Belt and Road Initiative,China will release more investment vitality,and the overseas competitiveness of Chinese iron and steel enterprises will also gradually increase.As an emerging economy,Kazakhstan has increasingly been valued by Chinese investors in recent years.The Belt and Road Initiative proposed by the Chinese government has brought new bright spots for the development of the iron and steel industry in Kazakhstan,and also brought new opportunities for Chinese iron and steel enterprises to invest in Kazakhstan.This paper mainly focuses on the environment,opportunities and risks of Chinese iron and steel enterprises investing in Kazakhstan.First of all,the article uses the Analytic Hierarchy Process(AHP)to construct a comprehensive evaluation system for the investment environment of the iron and steel industry,measures and compares the industrial investment environment level of ten mineral-rich countries along the Belt and Road,the results showed that Kazakhstan's investment environment in the iron and steel industry ranks second only to Russia in ten countries,the level of investment facilitation is higher,and the overall industrial environment is gradually improving.In Central Asia,Kazakhstan's iron and steel industry investment environment is significantly better than other countries.Secondly,this essay from the investment policy,market demand and enterprise development three aspects,summed up the three major opportunities for Chinese iron and steel enterprises to invest in Kazakhstan,including preferential policies promote the cooperation of international capacity,a large number of infrastructure construction will drive the demand for iron and steel products in Kazakhstan,and the implementation of the globalization strategy is imperative for Chinese iron and steel enterprises.Finally,we still use the Analytic Hierarchy Process to construct an investment risk assessment system in Kazakhstan.According to the assessment of investment risk,we find that the risks of Chinese iron and steel enterprises investing in Kazakhstan mainly include political risk,economic risk,business risk,socio-cultural risk and environmental risk.Among the five risk systems,Chinese iron and steel enterprises investing in Kazakhstan are most likely to experience economic risk,followed by political and operational risk.In 2016,the overall investment risk in Kazakhstan will decrease,which means that the country's economic development level and the investment environment is improving.Based on the above research,the following reference countermeasures and suggestions are put forward for Chinese iron and steel enterprises to invest in Kazakhstan.Firstly,strengthening cooperation in resources between the two countries,developing the downstream customer market of the iron and steel industry chain,and establish the iron and steel production base in Kazakhstan to promote Chinese iron and steel enterprises' investment in Kazakhstan.Secondly,raising risk warning awareness,building a comprehensive risk management system,establish “joint fleets” to protcet the interests of Chinese iron and steel enterprises.Finally,through the joint efforts of governments,industry associations,and enterprises to promote the internationalization of Chinese iron and steel enterprises.