Study On The Influence Of Economic And Trade Frictions On OFDI Of Chinese Enterprises

In more than 20 years after China’s entry into WTO,China has gradually developed into the world’s largest trading country,and at the same time has become the country suffering the most trade barriers.We used to think that the trade barriers suffered by Chinese enterprises are mainly from developed countries,but the fact is that more than half of the trade barriers Chinese enterprises suffered are from developing countries.At the same time,with the promotion of the "going out" strategy,China has also become a major country of OFDI.Many scholars believe that in order to alleviate and transfer the negative impact of trade barriers on the enterprises’ exports,some enterprises will choose foreign direct investment to bypass the trade barriers of the host country.On the basis of reviewing relevant literature,this paper first summarizes the theories related to trade friction,OFDI and their relationship,then analyzes the current situation of OFDI of Chinese enterprises,and further analyzes the influence of trade friction on OFDI and its influence path.Secondly,on the basis of the existing literature,this paper constructs the panel data model of Chinese enterprises’ OFDI behavior in the face of non-tariff trade barriers in the host country,and uses the method of empirical analysis to analyze the impact of trade friction on the OFDI of Chinese enterprises.In addition,this article also uses the Japan-American Economic and trade frictions on auto and semiconductor industries to further analyze the relationship between trade friction and foreign direct investment.Besides,this article combines empirical analysis and complementary case in order to conclude the Economic and trade frictions’ influences on Chinese foreign direct investment.And finally,I will put forward the corresponding policy recommendations.