Research On The Development And Strategy Of Foreign Direct Investment By Chinese Enterprises

In 2015,the scale of China's foreign direct investment surpassed foreign direct investment for the first time,and achieved net capital output.In 2016,China became the second largest investor in the world for the first time,second only to the United States.However,when China's foreign direct investment scale maintained rapid growth,the company's foreign investment However,the quality and benefits cannot be kept the same,and even blind and irrational investment has occurred,leading to a serious loss of capital.In 2016,Britain was separated from the European Union through a referendum.President Donald Trump proposed to solve domestic economic problems through trade protection.The uncertainty of the world investment environment increases the risk of direct foreign investment of Chinese companies.Foreign direct investment of enterprises not only relates to the growth and development of the enterprise itself,but also relates to the optimization of China's industrial structure and the healthy and sustainable development of the economy.On this basis,it is extremely important to study the strategic choice of Chinese enterprises' direct foreign investment.This paper sorts out the investment data of various countries,industries,and methods announced in the Statistical Communique on China's Outward Foreign Direct Investment.It concludes that Chinese enterprises' foreign direct investment services and manufacturing industries have maintained rapid growth,and the mining industry has declined;the developed countries are still The key areas of foreign investment,along with the promotion of the “One Belt and One Road” strategy,will drive the rapid growth of Chinese enterprises' investment in developing countries;cross-border mergers and acquisitions will be concentrated in developed countries,mainly manufacturing and information transmission/software and information technology services,and greenfield investment.Occurred mostly in developing countries,mainly leasing and business services,wholesale and retail.At the same time,we found that there are problems in the direct foreign investment of enterprises: the lack of strategic planning in direct foreign investment and blindly following the investment;the ability to identify and prevent political and cultural risks in the host country is weak;a large amount of capital inflows into non-entity industries,resulting in increased risk of bubbles;Direct investment in cross-border mergers and acquisitions lacks the ability to integrate and operate.Aiming at the problems existing in China's foreign direct investment,the paper analyzes the industrial strategy,location strategy and mode strategy of foreign direct investment by establishing the overall goal and the overall framework of industry,location and mode.This paper believes that the industrial strategy is the foundation,which is the investment direction determined by the enterprise according to the strategic objectives,and determines the location strategy and mode strategy for foreign investment.The location strategy and the mode strategy have mutual influence and mutual restraint relationship.The industrial strategy and the location strategy jointly determine the mode strategy,while the industrial strategy and the mode strategy jointly determine the location strategy.Industry choice is based on investment motivation and strategic objectives to determine whether the company has the three advantages of external investment(ownership advantage,internalization advantage and location advantage).This paper selects the mining industry,manufacturing industry and service industry for investment strategy analysis;the location selection is based on the influencing factors,including the macro factors of the host country and the micro factors of the enterprise.This paper selects the EU,the United States and ASEAN for investment strategy analysis;the basis for the method selection is the three benchmarks(enterprise level,industry level,location level).This paper analyzes the investment strategy of greenfield investment and cross-border mergers and acquisitions.This article selects the case of Sanpower Group and Fuyao Group to analyze the issue of foreign direct investment strategy of the company.Sanpower Group is a representative of the diversified development of the industry,cross-border mergers and acquisitions to enter the overseas market,Fuyao Group is the development of industrial integration,greenfield investment into the overseas market representative.Through the analysis and extraction of overseas direct investment in the two companies worth learning experience.