Influence Of Political Diplomacy On China's Outward Foreign Direct Investment

The deepening of the process of economic globalization has made the political and economic ties between countries in the world increasingly close.Political relations,diplomatic activities and institutional arrangements These political factors are given new meaning in the context of globalization,and their impact on economic activity has been more profound.Correct understanding and analysis The impact of bilateral political relations on a country's foreign direct investment is conducive to the better introduction of foreign investment in the host country,but also conducive to the mother country to better implement the "going out strategy." Based on the basic connotation of bilateral political relations,this paper focuses on the influence of bilateral political relations on China 's foreign direct investment by means of diplomatic activities and bilateral friendly cities.First of all,on the basis of summarizing the relevant research on foreign direct investment in recent years,combining with the theory of international business,international relations and political economy,this paper puts forward some hypothesis that friendly diplomatic contacts and the establishment of bilateral friendly cities can promote China Foreign direct investment for the corresponding host country.Secondly,in the empirical analysis,we draw on the variables of bilateral political relations in the original gravitational model: the bilateral political relations score,the number of bilateral friendly cities.The author draws the following conclusions: First,the good bilateral political relations can promote China's foreign direct investment in the corresponding host country,but this is the first time that good bilateral political relations can promote China's foreign direct investment in the corresponding host country.There is a significant difference between the developed countries and the developing countries.Second,the establishment of bilateral friendly cities has increased China's potential for direct investment in the country.Thirdly,good bilateral political relations have a certain regulatory role in China's investment risk in the host country.In the increasingly complex international political and economic environment,especially after the new US President Trump took office,the world in the process of trade and investment are facing greater risks and uncertainties.This requires the government to play its positive role,the use of the corresponding government functions for foreign trade and investment to create a good external environment.Finally,the article puts forward the corresponding policy connotation from the conclusion of the research.