Research On The Influencing Factors Of China's Direct Investment In Chad

With the development of economic globalization,China's foreign direct investment has developed rapidly.Since entering the 21st century,China has begun to implement the strategy of "going global".At the same time,the political situation of African countries has gradually stabilized and the policy of attracting foreign investment has been continuously improved.This has led to the rapid development of China's foreign direct investment in African countries.As a landlocked country in central Africa,Chad has made a lot of efforts to attract foreign investment with the improvement of its economic development level and the stability of its political environment.On April 26,2010,the Chinese government and the Chadian government signed the Agreement between the Government of the People's Republic of China and the Government of the Republic of Chad on the Promotion and Protection of Investment,which greatly promoted China's foreign direct investment in Chad.On the basis of reviewing the traditional international investment theory and developing countries' foreign direct investment theory,this paper studies the influencing factors of China's direct investment in Chad.This paper first gives an overview of China's foreign direct investment,mainly from the two perspectives of the scale of China's foreign direct investment and the distribution of investment subjects in recent years.It also expounds the current situation of China's foreign direct investment in African countries and finds that it presents the following three characteristics.First,the scale of investment is gradually expanding and the stock of investment is steadily increasing year by year.Second,the number of investment countries is increasing and the country coverage ratio is relatively high,but investment flows are relatively concentrated.Third,the investment field has expanded from resource-intensive to labor-intensive,but the investment industry is still relatively concentrated.Then the basic economic situation of the Republic of Chad is elaborated from four angles of economic scale,population and employment,industrial scale and foreign trade.Chad's overall economic level is relatively backward and its GDP is relatively low,but its overall employment level is relatively good compared with the world level.Chad's economic development mainly depends on the primary industry and the tertiary industry,but the largest economic pillar of the primary industry;Since Chad began to exploit oil and officially became an oil exporter after 2003,it slowed down the development of manufacturing and service industries,making Chad's economic development show various characteristics of "Dutch disease".At the same time,Chad's export trade is mainly the export of natural resources and raw materials,while domestic industrial products are mainly obtained through importThen,this paper uses qualitative analysis and SWOT analysis to analyze the influencing factors of China's direct investment in Chad.Through the analysis of Chad's economy,politics and culture,it is found that although these factors restrict China's direct investment in Chad to some extent,Chad is a country with great investment potential.China's multinational companies have the advantages of labor force and complementary resources in making direct investments in Chad.However,the disadvantages are also obvious,mainly due to the low level of industrial development in Chad and the cultural and linguistic differences with China,which have adversely affected the direct investment of Chinese multinational companies.Of course,China's direct investment in Chad also has policy and market opportunities,but there are also certain risks,such as political and public security risks,investment environment risks,information asymmetry risks and international risksFinally,this paper summarizes the influencing factors of China's direct investment in Chad,and puts forward relevant policy recommendations.Chinese enterprises should inspect in advance before entering Chad,and improve the information system and financial system in Chad.At the same time,enterprises should actively assume corporate social responsibility after entering the local area,and make contributions to the building of a community of human destiny.