Study On The Location Choice Of OFDI Of Chinese Multinational Enterprises

Under the background of economic globalization,the economic competition of all countries in the world is intensifying,the global economic and trade situation is changing rapidly,which also has a great impact on the global development layout of transnational enterprises.Compared with foreign large-scale transnational enterprises,Chinese enterprises have a late start in foreign direct investment and little investment experience.In order to occupy an advantageous position in international competition,they need to make many efforts.How to develop foreign direct investment better under the current severe international situation has become the key problem that Chinese enterprises are facing at present.Whether foreign direct investment can obtain income or not,the core problem is the choice of investment location,that is,where to invest the capital,the choice of location directly affects whether multinational enterprises can better use their own advantages and various convenient resources to obtain investment returns.Location selection is a complex process,which requires enterprises to consider many factors comprehensively.How to find the best location for investment is the focus of this paper.This paper with the multinational company foreign direct investment location choice of related literature at home and abroad were summarized,with foreign direct investment location choice related theory as the research foundation,combed the multinational enterprises in China in recent years,foreign direct investment situation,analyzed the flow of foreign direct investment in China in the recent ten years and stock data,studied in recent years,Chinese enterprises foreign direct investment in the distribution of global each big area;Based on the analysis of the current situation,this paper analyzes the main risks and challenges that Chinese multinational enterprises encounter in the selection of investment location,so as to help Chinese enterprises realize their own shortcomings in the selection of future transnational investment location,take preventive measures in advance,avoid risks and reduce investment losses.Next,taking Geely auto as an example,through the analysis of the location selection of Geely auto’s operations and OFDI in recent years,the success factors of its investment location selection are obtained: clear strategic objectives,emphasis on R & D investment and technological innovation are very worthy of learning and reference by other multinational enterprises.It can be concluded from the successful experience of Geely automobile and large international multinational enterprises that if Chinese enterprises want to achieve the international level,they must keep up with the pace of The Times and attach importance to technological R & D and innovation.In the end,the paper puts forward some reasonable countermeasures and suggestions on the problems that Chinese enterprises encounter in OFDI location selection,such as too centralized investment location,unreasonable investment structure of private enterprises,and imperfect legal system,hoping to contribute to the development of Chinese enterprises’ location selection of foreign direct investment.In order to help Chinese enterprises to better choose the location of OFDI,the government should improve the service level,improve the legal system,provide reasonable investment suggestions for enterprises through its own advantages,and create a good investment environment for enterprises.In addition,enterprises should make clear their strategic objectives,strengthen R & D investment,technological innovation,and reasonably arrange investment areas.Only with the joint efforts of enterprises and countries,Chinese multinational enterprises will embark on the road of high quality,high efficiency and sustainable development,so as to stand firm in the fierce overseas market competition and remain invincible.