Study On Direct Investment Of China To Mongolia

Since the reform and opening-up, China not only has been maintaining a high economic growth rate but has strengthened its comprehensive national power greatly. In the light of the opening-up economic strategy of combining "bringing" and "going global", China's economy has become more vigorous and internationally competitive. Meanwhile, in the 21st century, the world economy will be the extent of economic globalization and integration. No country can rely on their own resources, funds, technology and markets to purser its own economic development, and taking the road of economic internationalization has become an inevitable choice for the times under the conditions of investment-led international division of labor and modern open economy. China, one of the important economies in the world is no exception.China as one of the world major economies and an important part of the world, can not only rely on foreign trade to participate the international economic cooperation and competition, and by attracting foreign direct investment in the global division of labor we can only passively accept the layout of the developed countries and can not take a favorable position. Therefore, if Chinese enterprises do not go out to conduct foreign direct investment and improve their competitiveness through the participation in international competition, Chinese enterprises will not be able to obtain the many benefits from economic globalization. Therefore, in the same time of conducting foreign trade and attracting direct investment, Chinese enterprises should participate in international competition and develop foreign direct investment. Only in this way can we make our economy connected with the whole world economy, can we closely hold the opportunity to develop our domestic and foreign investments environment. Only then, can we develop and use the market from the global scope, can we make the foreign direct investment of our country to step into higher level, thus truly realize the magnification of investment scale and the globalization of investment region. Among the various target locations in which China can choose to invest, Mongolia is the country that should not be ignored. There are many chances between China and Mongolia in all walks of life. At present, China has become the world manufacturing center, in terms of resource endowment and industry structure, China and Mongolia are complementary to each other. As a result, there are ample opportunities for bilateral trade and investment. After years of development based on drawing in FDI, China's outward FDI development has gained momentum. Therefore, it is now practical and feasible for china to invest in Mongolia.Follows the Chinese and Mongolian trade development, China is becoming one of Mongolian most important trade partners, also in Mongolian's international trade partners, China' status increasingly enhances. According to the Mongolia state statistical bureau bulletin data display, China has already continuously eleven years become the first trade partner, the largest export destination and the second largest source of import.In the first half of 2010, the Chinese and Mongolian volume of trade composes the Mongolian foreign trade exports and imports total of 55.1%. In the investment area, China invested 116 million US dollars in 2009; the investment stock in Mongolia has reached 1.011 billion. China has already continuously twelve years become the largest investment origin status, the total investment volume in Mongolia has exceeded Mongolian foreign investment total of 50%. However, in the long term, the Chinese and Mongolian economic and trade relationship needs further to expand. Especially compared with the northern neighbor Russia tradition economic cooperation, the Chinese and Mongolian economics and trade cooperation has the very big disparity. At present, studies about the Mongolian and Chinese trade and investment cooperation achievement are not plenty; therefore the present paper research has the certain practical significance.In the basis of combing location selection, equity proportion in line with the principle of integrating theory with the Mongolian and Chinese related literature, the thesis analyzes Mongolian investment environment, the necessity of China's outward FDI in Mongolia and strength and weakness between China and Mongolia, from which provide some suggestions on China's outward FDI in Mongolia from the perspective of industry selection, location selection and equity proportion.