Research Of China's Outward Foreign Direct Investment Location Choice

Economic globalization deepens further in the 21st century. Under the modern economic environment of global competition and investment-orientied division of labour, there is absolutely no alternatives other than to take internationalized economic development path for each country, so does China as one of major economies in the world. China's outward foreign direct investment (OFDI) has developed very rapidly in the past three decades of reform and opening-up. Especially in the first decade of the 21st century, China's FDI outflows have increased by nearly 47 times. China's companies have invested in 177 countries (regions) around the world, more and more Chinese enterprises are going global as well. Location selection is the most important issue while undertaking direct investment abroad, so it has significant implications to study on this issue.The paper explores the determinants of Chinese enterprises' OFDI based on the analysis of current situation of China's OFDI in order to provide important information to Chinese companies going international. The fist section gives the study background, significance, literature review, research methods as well as paper organization. In section 2, we make descriptive analysis on investor ownership, investment patterns, investment sectors, investment scale and the geographical distribution. In section 3, we focus on the determinants of natural resource-seeking, market-seeking and technology-seeking investment, then use grey correlation analysis for empirical investigation. In section 4, we examine the current issues in China's Outward Direct Investment. Lastly we give the policy recommendations from both the macro-and micro-standpoint.