A Study Of China's Direct Investment In Central Asian Countries

In September,2013,Chinese President Xi Jinping,comed come with the "Silk Road Economic Belt" conception in Kazakhstan.in November,the third plenary session of the 18 CPC Central Committee decided that rely on constructing the silk road economic belt,Speed up the pace of China's opening to the West.Central Asia,next to the western part of China,has an extremely important position in the "Silk Road Economic Belt".After decades of development,China's direct investment in Central Asian countries from scratch,from small to large,finally has made a remarkable achievement,but there is no deny that China's direct investment in central Asian countries still exist many problems,hinder the deep development of China's cooperation with Central Asian countries.This paper collected the stock and flow data of China's direct investment to central Asian nations from 2005 to 2016,found that China's direct investment in Central Asian countries is generally small ? undulation and mainly in the field of energy.Main problems of China's direct investment in central Asia is: the structure of direct investment is unreasonable,the investment environment is not good in central Asian countries,direct investment in the energy sector faces severe competition from big powers.The main reason for the irrational problem of the direct investment structure is: On the macro level,China's energy import diversification strategy coincides with the "energy building country" strategy of Central Asian countries,On the micro level,the large and medium-sized state-owned enterprises occupy the main position of China's direct investment to Central Asian countries for a long time.The main reason for the poor investment environment in central Asian countries is: the policy changes frequently,officials embezzlement and corruption;the economic infrastructure is lagging behind,the economic structure is out of balance for a long time and the ability to resist the international financial crisis is low;facing the problems of national conflict and demarcation of water resources,and the serious threat ofinternational terrorism.China's direct investment in the energy sector in central Asia is facing the competitive pressure from the US,Russia and the European Union.The United States has political,economic and security interests in Central Asia,and is a realistic competitor for China to open up the energy market in Central Asia.The competition between Russia and the European and American countries has actually occupied the potential market of China and became a potential competitor.As one of the world's major energy importers,the EU has a strong economic strength and an increasingly effective aid policy to central Asia that increase the influence on the energy markets of central Asia.China should not only seek international cooperation on direct investment in Central Asia,but also prepare for the fierce international competition.In order to solve China's problems in the direct investment in central Asia.First,it is necessary to optimize the investment structure by relying on the "Silk Road Economic Belt" initiative.Second,we need to help central Asian countries improve their investment environment.Third,we must deal with the relationship between major countries and adopt different strategies for different countries.Although China's direct investment in Central Asian countries is facing difficulties,with the gradual development of the "Silk Road Economic Belt" initiative,China's prospect for direct investment in Central Asian countries is bright.