Research On The Location Selection Strategy Of CLP Solar's Overseas Direct Investment

As an important sector in the development of new energy industry,photovoltaic industry is becoming increasingly important in the world.In recent years,Chinese PV industry develops very fast and China has become the main global photovoltaic producing and exporting country.Europe and America have launched a series of anti-dumping and anti-subsidy investigations on Chinese PV products since 2011.Many Chinese PV companies' businesses in the Europe and the United States market are severely limited.In order to deal with the serious overcapacity,some companies are trying to build factories overseas to avoid the anti-dumping and anti-subsidy taxes.China Sunergy(CSUN)is one of the private Chinese PV enterprises in the forefront of foreign direct investment.In 2012,CSUN successfully invested Turkey factory.Then the company established the strategic policy of seizing the foreign market in the advantage of overseas factory.At present,CSUN has already set up factories in Turkey,South Korea and Vietnam.However,the three factories still can't fulfill the market demand.In order to diversify the investment risk and capture new market opportunities,CSUN must find new markets for investment.Due to fierce market competition,complex and changing international environment,which market to choose and how to ensure the safety and profitability of foreign direct investment are the key problems that CSUN need to solve at present.This paper first studied the related theories of foreign direct investment,then used the related theory of foreign direct investment to research the current situation and existing problems of CSUN's foreign direct investment,analyzed the external environment and internal conditions of location choice for CSUN's foreign direct investment and made SWOT analysis accordingly.After that,the paper raised the strategic principles and general idea of CSUN's strategy of location choice for foreign direct investment,including avoiding the political risk,closing to the market,market diversification,profit maximization and advantage complementation.The conclusion is that CSUN should choose Brazil as the next foreign direct investment location.Finally,the paper raised the implementation scheme and safeguard measures of CSUN's strategy of location choice for foreign direct investment.