Location Selection Of Chinese Enterprises' Direct Investment In The United States

The development of global economic integration has made international investment rise rapidly.Internationalization has become an important way for enterprises to open up markets and acquire strategic resources.As the largest developing country in the world,Chinese foreign direct investment has been increasing.In 2016,it became the world's second largest source of foreign direct investment.According to Rhodium Group:China Investment Monitor(2017),Chinese direct investment in the United States reached $136.5 billion in 2000-2017.The United States,as a typical developed country,has abundant natural resources and relatively complete infrastructure.There are also advanced science and technology and management experience worth learning from Chinese companies.The United States has become the second largest destination for Chinese companies in foreign direct investment(only after Hong Kong).Based on this,this paper combines the related content of institutional theory and transaction cost theory,and starts from the perspective of relationship,and studies the influence of civil relations and official relations on the location choice of Chinese enterprises in the United States.And on the basis of studying the relationship between official relations and civil relations on the location of Chinese direct investment in the United States,it puts forward the political tendency to regulate the relationship between the two.This paper uses the data of Chinese enterprises' direct investment in the United States from 2010 to 2015,and uses the stata13.0 to analyze the data using the clogit model.The results show that the stronger the civil relations between China and the region,the more likely Chinese companies are to make direct investments in the region;the stronger the official relationship between China and the region,the more likely Chinese companies are to invest directly in the region.Compared with the Republican Party,the Democratic Party will weaken the positive influence of non-governmental relations on the direct investment of Chinese enterprises in the United States.This paper has conducted a more in-depth discussion on the direct investment of Chinese companies in the United States.For the first time,the relationship between civil relations and official relations and the location choice of Chinese enterprises in the United States for direct investment has been studied,and creatively joined the party politics as a regulatory variable,enriching the relevant literature on location selection.Finally,this paper proposes a number of policy recommendations for the government and related companies.First of all,govermment department needs to support and correctly guide enterprises to "go out",in order to create a good investment climate for enterprises.Secondly,multinational corporations themselves must recognize the economic situation of the world today and have an accurate positioning for themselves.At the same time,they will continue to improve their competitiveness and gain a place on the international stage.