Research On China's Direct Investment In Five Central Asian Countries Under The "One Belt, One Road" Initiative

The five Central Asian countries are Kazakhstan,Uzbekistan,Kyrgyzstan,Turkmenistan and Tajikistan.They are all important land neighbors in the west of our country.This paper takes China's direct investment in five Central Asian countries as the research object,and combs the history and current situation of China's direct investment in five Central Asian countries.This paper focuses on the characteristics of China's direct investment in the five Central Asian countries under the “The Belt and Road” initiative and the main challenges it faces,and on this basis,puts forward some suggestions for further promoting China's direct investment in the five Central Asian countries.The paper holds that with the advance of the “The Belt and Road” initiative in China,the economic and trade cooperation between China and five Central Asian countries has deepened,and cooperation in energy,transportation,finance,production capacity and other fields has been improving.Among the five Central Asian countries,Kazakhstan has the best investment environment and is the most suitable “hot” country for investment in Central Asia.Turkmenistan and Uzbekistan have their own advantages,while Kyrgyzstan and Tajikistan are "cold" countries that are not suitable for investment.The investment environment of the five Central Asian countries is influenced by political,economic and legal factors.At the present stage,China's major challenges in promoting the further development of direct investment in the five Central Asian countries lie in four aspects.Firstly,the domestic political environment of the five Central Asian countries is deeply influenced by the game of big powers,the domestic partisan struggle is fierce,and the investment policy lacks continuity and stability,so it can not expand investment in China.Secondly,the national and religious problems of the five Central Asian countries threaten the security of foreign investment.Thirdly,the financial system of the five Central Asian countries is relatively fragile.These countries have poor resistance to financial risks at home and abroad.The frequent large fluctuations of exchange rates seriously affect the inflow of foreign capital.Fourthly,the bad business environment of enterprises in the five Central Asian countries is not conducive to the further increase of China's direct investment in them.Relying on China's “The Belt and Road” initiative is to implement and promote,China can take measures from two levels of state and enterprise to promote China's direct investment in five Central Asian countries.At the national level,we must first give full play to the important role of the Shanghai Cooperation Organization in promoting the “The Belt and Road” initiative and China's direct investment in the five Central Asian countries,so as to help the apply of RMB in the Central Asian region.Secondly,we should improve the laws,regulations and insurance guarantee system,and make full use of the policy evaluation system and early warning system to serve the economic activities of Chinese-funded enterprises in the five Central Asian countries.Finally,we should strengthen the exchange and communication of folk culture.At the enterprise level,on the one hand,Chinese enterprises should fully and reasonably evaluate investment projects before investing,and do a good job of location selection and policy cohesion.On the other hand,we should pay attention to local customs and systems,carefully select partners,handle the relationship with local governments and residents,and achieve win-win cooperation.