Whether China's OFDI In Countries Along The One Belt And One Road Has A Political Risk Preference

In 2013,President Xi Jinping proposed a major initiative of "Silk Road Economic Belt" and "maritime Silk Road Economic Belt in twenty-first Century",that is,"one belt and one road",adding new impetus to the implementation of the "going out" strategy.With the east wind of the times,Chinese enterprises have broken the geographical restrictions,and continuously increased the scale of direct investment to the countries along the belt and road,helping the internationalization process of RMB and the sustained economic growth under the new normal economic situation.In 2018,China's "one belt and one road" construction entered a new stage of comprehensive and pragmatic cooperation.According to the Ministry of commerce data,in 2018,the direct investment of Chinese enterprises to the countries along the belt and road was nearly 15 billion 640 million US dollars,an increase of 8.9 percentage points over the same period last year.In the context of the "one belt and one way" strategy,China's trade and cooperation with the countries along the border have made it possible for the domestic surplus capacity and foreign exchange reserves to be combined with the rich natural resources and other relative advantages of the countries along the border,so as to promote the flow of production factors,especially capital,around the world.The unique wisdom in the tide of competition and cooperation.However,the ancient Silk Road,which stretches thousands of miles,also contains many risks.The strategy of "one belt and one road" involves many countries and regions.The countries along the line are in an upward stage of economic development,and the industrial foundation is weak,and the state power is facing more unstable factors.In addition,although some countries along the route are vast in territory and abundant in natural resources,they are also the intersection of interests of many world powers.Geopolitical game is serious,and they even face the threat of terrorism and external wars(Xia Xianliang,2016).However,China's scale of direct investment in the countries and regions along the "one belt and one road" has been expanding.According to the statistics of Ministry of Commerce,China's direct investment funds to the countries along the "one belt and one road" mainly flow to Singapore,Laos,Indonesia,Malaysia,Pakistan,Kampuchea,Russia and other countries and regions.According to the "China overseas investment country risk rating report(2018)" rating data,in terms of political risk,the "one belt and one way" country ranks the middle low position.Singapore is the only country with a political risk rating of AA in the selected countries along the "one belt and one road" sample.This paper analyzes the relationship between the political risks of countries along the “Belt and Road” and China's foreign direct investment,and focuses on whether China's OFDI in the countries along the route has political risk preferences.In this paper,using the panel data of 35 countries along the line of OFDI in China,using the extended gravity model to conduct empirical tests,it is found that there is no political risk preference in China's ODFI countries along the “Belt and Road”;along the abundant natural resources The level of national legal system has a significant impact on China's OFDI;the level of government effectiveness of non-natural resource-rich countries and developing countries has a significant impact on China's OFDI;China's direct investment in countries along the line also shows resource seeking motives and markets.Seek motivation.