Study On Strategies Of Utilizing FDI In China's Petroleum&Chemical Industry

Since the reform and opening-up,China's economy,industrial technology and industrial structure have made remarkable and rapid development,and China's comprehensive national strength that draws global increasing attention has greatly enhanced.China's correct reform and opening-up policy and the unremitting efforts of the whole country have enabled China's remarkable achievements.Benefited from the reform and opening-up policy,China has attracted tremendous number of Foreign Direct Investment(FDI)which has played critical role in the respects of construction funds,technological excellency,management standard and international integration.Under the background of globalization,FDI will be continuously supporting China's economic development in long term.Petroleum and chemical industry,China's important industrial cornerstone and one of the important pillar industries in the national economy,has been attracting tremendous foreign direct investment.The absolute particularity of Middle East region's huge oil reserves influences global petroleum and chemical industry.China's external oil dependency rate is over 70% and it has been importing large number of crude oil from Middle East.At the same time,Middle East is one of the most critical pivot points of China's "one belt and one road" roadmap.As such,entire industries in China especially the petroleum and chemical industry should pay great attention to the Middle East.This paper mainly uses the methods of theoretical analysis,statistical data analysis and comparative analysis.It takes the kingdom of Saudi Arabia,the largest oil exporter in the Middle East,as an example.Firstly,these studies tease out the theory of foreign direct investment,the relationship between foreign direct investment and global trade.It further analyzes the current situation of Saudi Arabia's economy,its foreign investment and trade strategies,related industry statistics as well as the advantages of the FDI from KSA into China.According to the above,this paper figures out the enablers of Saudi Arabia's foreign direct investment and its investment intention to China's petroleum and chemical industry.Secondly,it analyzes China's newly published foreign investment policy and its overall impact on the petroleum and chemical industry.It draws a clear picture of China's current position of petroleum and chemical industry globally,and China's current situation of leveraging foreign investment.Meanwhile,it shows the expansion and footprints of global petroleum and chemical enterprises in China.Then comes up with conclusion that China's petroleum and chemical industry is eager for Saudi Arabia's investment.Thirdly,it introduces the major Saudi Arabian companies in China,their ongoing and planned mega projects,and then summarizes a brief analysis and lessons learned.Finally,this paper summarizes the significant role of Middle East especially Saudi Arabia's direct investment has been playing in China's petroleum and chemical industry,and puts forward the strategic proposals on how to better attract and properly utilize the foreign direct investment to enhance China's petroleum and chemical industry.