Research On The Factors Affecting The Location Choice Of China's Foreign Direct Investment

With the continuous development of economic globalization,China has integrated into the international community with a more open attitude.However,after the financial crisis in 2008,trade protectionism has continued to rise and the international economic structure has also changed.At the same time,China's economic growth rate has gradually slowed down and entered the new normal,which has prompted us to accelerate the adjustment of the resource-intensive industrial structure to the innovation-driven industrial structure.In addition,China's current economic development is under great pressure:rising labor costs,overcapacity,structural imbalances,etc.All kinds of problems require us to find breakthroughs,and foreign direct investment provides new ideas for solving these problems.Through foreign direct investment,China can make full use of both domestic and international resources to solve the problems that China is facing in a global perspectiveThis paper matches the investment motives of China's foreign direct investment with the location advantages of the host country,with a view to discovering the differences in China's motives for direct investment in different types of host countries.Based on the existing research and based on the relevant foreign direct investment theory,this paper reviews the development history of China's foreign direct investment,sorts out the current situation of China's foreign direct investment,and analyzes the influencing factors of location choice in China's foreign direct investment by using the gravity model,and then compares China's motives for direct investment in different types of host countries,the results show that:China's foreign direct investment in general shows market seeking,resource seeking and efficiency seeking motivations;For different host countries,Chinese investment to developed countries is a strategic asset seeking type;investment in developing countries is market-seeking and efficiency-seeking;investment in resource-rich countries is market-seeking and resource-seeking,and the distance's influence to China's direct investment in this type of country is significant and negative.Finally,the paper gives policy recommendations from both macro and micro levels.