Research On Barrier And Strategy For Chinese Corporate Investors In Agricultural Sector Of Ukraine

Sino-Ukrainian relationship has been developing for 26 years facing some major challenges in the early 2000^th and again in 2014,the latter due to the unsafe social situation in the country.However,close proximity to EU countries,cheap but highly-educated labor force,relatively low cost of starting a company are all the reasons for Chinese companies to invest in Ukraine.For example,COFCO Corporation has established a terminal COFCO Agri in Ukraine in 2015,thus becoming the first project in Ukraine completely realized at the expense of Chinese investments.Ukrainian-Chinese investment relationship is strategically important as for both states as for international society,because it will normalize the present economic destabilization,help escape global economic crisis,and,at the same time,will restore the health of economy of Ukraine as the state with a lot of natural and human resources and China as sustainable state with large financial capital.China's interest in cooperating with Ukraine is also linked to the decisions taken by the Chinese leadership to establish"foreign food bases."In particular,it concerns the use of Ukraine's agro-industrial potential combined with investment and technological capacities of China.The aspiration and practical steps of Ukraine to establish the closest possible economic relations with Europe are in no way an obstacle to cooperation with China.After the signing and ratification of the EU-Ukraine Association Agreement,Ukraine,at the stage of its implementation,becomes certain"gate"to Europe.This is important for the Sino-Ukrainian relations,especially in the context of the implementation of the idea of the revival of the Great Silk Road proposed by China's Chairman Xi Jinping.Ukraine will continue to improve the investment climate in agriculture,communications,automotive,construction and other industries,which will boost investment from Chinese enterprises.In the future,bilateral investment cooperation between the two countries will gradually increase.In recent years,the Sino-Ukrainian relations in the investment and trade spheres are developing rapidly,but at the same time,the number of Chinese investments remains insignificant,with a low level of technical.In this research,we addressed reasons for the barriers,which Chinese investors face while planning and implementing business investment decisions?establishing cooperation with companies,exporting,or opening own business?in Ukraine's agricultural sector.The goal was not only to uncover these challenges but also to provide possible strategic solutions,based on successful cases of existing Chinese investors in the country.The thesis included a mix of qualitative?including extracts from interviews and analysis?and quantitative?using available databases,financial reports analysis,survey analysis?approaches to answer the question of research.Moreover,the study also included a desk research and a comprehensive literature review.Even though Sino-Ukrainian trade and political relationship have long history,there have been very few researches in this area.The reason for this is that usually investment projects are not broadcasted or officiated openly,therefore the information and data can be limited.Previous studies have mostly focused on the political side of Sino-Ukrainian relationship,as well as policies of both countries aimed at developing technical and scientific exchange.The literature explores the Sino-Ukrainian investment and trade problems as a whole,and there are no specific recommendations for foreign investment by Chinese enterprises.Based on the results of the survey of potential investors and the analysis of current Chinese investors/companies in the agriculture sector of Ukraine,we were able to test both hypotheses,as well as provide a number of possible strategic solutions.