The Investment Motivation And Location Choice Of Chinese Company FDI

As the integration of the world economy deepens,China's overall national strength continues to increase,more and more domestic companies have stepped out of the country to move toward the world and have made efforts to develop direct foreign investment to achieve the internationalization leap.However,due to subjective and objective reasons,Chinese enterprises' outward foreign direct investment is at an initial stage of development and the overall level of development is low.Among these actively developing companies,leading companies in communication equipment manufacturing represented by ZTE and Huawei are the earliest and foreign investments have achieved remarkable results.Huawei and ZTE have become some of the earliest representatives of enterprises that have made international investments overseas and have achieved success.Both companies are in the communications equipment industry,but due to their different backgrounds and different strategies,they have performed differently in foreign direct investment.The article uses literature research methods to sort out the related results of foreign direct investment.Combining domestic scholars' research on the communications equipment industry and the investment history of Huawei and ZTE,this paper believes that Huawei and ZTE have the following main motivations for direct foreign investment: Third,seeking markets,seeking technology,and seeking efficiency.Huawei has also invested in strategic assets in the globalized and balanced distribution phase due to its solid strength scale.ZTE's state-owned background makes it a politically oriented factor in foreign direct investment incentives,confirming the domestic scholars' research on foreign investment.The correctness of the results.Motivation,as one of the internal influence factors of foreign direct investment,affects the choice of foreign direct investment location of the company together with the scale,form,and humanities of the company.In addition,in the face of different host country investment environment,the company will also Natural,social and political factors determine the specific investment location.Through the combination of Huawei and ZTE's different types of outward investment examples,this paper finds that Huawei and ZTE are more inclined to the developed countries in Europe and the United States in the location choices set up by the R&D center.In seeking investment in the market,Huawei is conversely investing due to the influence of its corporate culture.Russia gradually developed into the European market and achieved breakthroughs and occupations in the high-end market.ZTE is more conservative and conservative.It focuses on the occupation and development of developing country markets,which also makes it a big gap between Huawei and Huawei in the late globalization period.In terms of setting up an operation center,Huawei and ZTE have established operation centers in different countries in Europe to achieve product customization and service localization.Through the performance of technology,market,and efficiency,it can be seen that Huawei's external investment in technology and market performance is better,and ZTE has already produced a large gap with Huawei.