Research In Political Economy On China’s FDI In Eurasian Economic Union

After China joined the WTO,the level of Chian’s opening to the outside world has been continuously improved.With the development of globalization,Chinese investors have begun to accelerate the layout of overseas markets and FDI has grown rapidly.In recent years,problems such as weak global economic recovery,fluctuations in international commodity prices and rising trade protectionism have also become increasingly prominent,and the economic growth of countries around the world is more difficult.Against this background,the “Belt and Road” initiative.Subsequently,Russia and Central Asian countries can not to be ignored in “Belt and Road”,they established the Eurasian Economic Union on January 1,2015.Over the past 7 years,it has received positive response.China’s OFDI has been expanding.At the same time,the connection between “the Silk Road Economic Belt” and the EAEU has laid a good foundation and conditions for China to accelerate its investment and cooperation with the union.However,due to the important international geopolitical status in the region,the exclusivity of the EAEU with a strong political color,Russia’s dominance in the organization,and the“China Threat” and other factors,which will undoubtedly make China’s investment activities in the EAEU to be greatly affected.As an important regional economic organization along the “Belt and Road”,the geopolitical status and energy resources of the EAEU determine the significance of China’s FDI.This article is divided into eight chapters.Based on the theoretical research of mainstream foreign investment theory,developing country’s foreign investment theory,regional investment theory and dependency theory,this paper proposes the research logic of this paper with reference to the general analysis framework of political economy,and builds a political economy analysis framework for China’s direct investment in the EAEU.Based on this analytical framework,this paper analyzes China’s FDI in the EAEU from four aspects.This paper first uses economic tools to analyze economic effects,and uses data from 2003 to 2020 to conduct regression analysis of the economic growth effects,trade effects,employment and economic growth intermediary effects of direct investment in China and the EAEU,Then,using political science research methods,a detailed analysis is made from the analysis of political factors affecting OFDI,the analysis of the investment environment affecting OFDI,and the analysis of the decision-making mechanism of OFDI.By carefully summarizing the research conclusions of the above analysis,this paper finally puts forward practical countermeasures and suggestions that will help China strengthen FDI cooperation in the EAEU,reduce investment risks,and improve investment returns from the two levels of the state and enterprises.This paper mainly draws the following research conclusions:From the perspective of investment characteristics: China’s demand for foreign investment is larger,while the capital gap in the EAEU is relatively large,but the scale of China’s FDI to the EAEU is very small.Judging from the empirical results of economic effects,China’s economic growth will stimulate the growth of China’s FDI to the EAEU,and the effect of investment on bilateral import and export trade is not significant.China’s FDI to the EAEU is subject to a variety of political factors,and this political influence is increasing in an increasingly complex international situation.When making outbound investment decisions,the Chinese government will be affected by four political factors: national political and economic security,national development strategy,China’s diplomatic relations,and bilateral investment treaties.FDI that is detrimental to the foreign policy of the members of the Eurasian Economic Union,the integrity of national sovereignty,political stability and social stability will not be accepted and treated well.Within the Eurasian Economic Union,there are those who oppose investment cooperation with China and those who support cooperation.From the perspective of investment environment,the environment for China’s direct investment in the Eurasian Economic Union will directly affect China’s choice of investment region,investment industry and investment method for the Alliance.Judging from the decision-making mechanism of China’s investment in the EAEU,when making investment decisions,the EAEU countries have to measure the influence exerted by various power groups in a specific period,and the process of this influence is very complicated.Based on the above,the Chinese government and enterprises must see both its openness and its exclusivity;FDI in the EAEU should consider both the economic benefits of investment and the political influence of investment.