A Study On The Outward Foreign Direct Investment Of Sericulture Industry In China

Since the 90s of last century,with the rising costs of raw materials,labor,energy of sericulture’s planting and nurture,the links of planting mulberry,sericulture and silk reeling in the front of the sericulture industry have emerged a phenomenon of large-scale labor expensive,that has brought serious impact on sericulture industry.In China,due to the widening gap of production costs between the eastern and western industries,the state has gradually begun to implement the project of "transferring cocoon from the east to the west".Due to the rapid development of industrial economy and urbanization in some eastern of regions China,such as Jiangsu,Zhejiang and so on,the development of sericulture industry in these provinces has been limited to a certain extent and the scale of industry has gradually shrunk.In contrast,industrial economy in the central and western regions is relatively backward,but there is much idle land and appropriate age of labor force in these areas,so the sericulture industry in these provinces,represented by Guangxi and so on has developed rapidly.Because the development of sericulture industry in some areas of the Midwest is not very developed and other reasons,the overall scales of Chinese mulberry cocoon production have shown a shrinking trend in recent years.Under these circumstances,Chinese sericulture industry is in urgent need of "Going Global" to the world to find a broader space for development and actively carry out Outward Foreign Direct Investment.This paper started with the situation of Chinese sericulture industry,and analyzed the motivations of the foreign direct investment of sericulture industry in combination with the current national policy,production cost and industrial structure upgrading;Then,based on the Outward Foreign Direct Investment of sericulture industry,this paper made a comprehensive analysis of the international competitiveness of sericulture industry chain by using diamond model;In the end,the article combined the specific investment case of JIUJIU SILK CLOTH SHARE LIMITED COMPANY in Uzbekistan with the situation of Outward Foreign Direct Investment of Chinese sericulture industry,pointed out the corresponding issues and made better suggestions for the development of Outward ForeignDirect Investment of Chinese sericulture industry from three angles of governments,industry associations and enterprises.This paper analyzed the problems that were encountered in the process of Chinese sericulture industry’s Outward Foreign Direct Investment,and argued that the government should strengthen the macroeconomic protection function,consummate the legislation of the sericulture industry’s Outward Foreign Direct Investment,provide more comprehensive legal protection for the Outward Foreign Direct Investment of sericulture industry and so on;industry association should strive to safeguard the legitimate rights and interests of enterprises,consummate the information platform of sericulture industry’s Outward Foreign Direct Investment enterprises and give members of the association a timely solution to different kinds questions;enterprises should go to the host country to conduct a comprehensive inspection,broaden the channels of employment,strengthen product brand building,actively participate in local public welfare undertakings,pay attention to maintaining a good corporate image,and comprehensively promote the smooth development of sericulture industry’s Outward Foreign Direct Investment.