Accelerate Chinese FDI To Developing Countries During The Financial Crises

The American subprime mortgage crisis comprehensively erupted in August, 2007.With the financial derivatives enlarging the property loss greatly,lots of financial giants went bankrupt.The crisis rapidly spread to European developed countries,and caused the worldwide financial fluidity contracting,market demand declining,investment decreasing,which finally formed the global financial crisis. Meanwhile,developing countries have being developing rapidly these years as a result of the rise of primary product price and the massive FDI inflows.But the financial crisis causes the developed countries' FDI into the developing nations dropped greatly,which consequently caused the fund shortage of developing countries.So this situation offers a valuable opportunity for China to promote FDI into those developing countries.The opportunity goes with the crisis.After a long period of rapid economic growth,China is strong enough to play a more vital role in the world economy.Thus, China should promote FDI to developing countries positively in this financial crisis, which will contribute to the economic growth of China as well as the host country.Therefore,this paper tries to elaborate that China has the ability to invest those developing countries in this situation,and the special benefits which can be gained by investing developing countries,and the target industries for Chinese FDI.On this basis,this paper suggests that China should take African countries as a key FDI location,and prove it by discussing the advantages and special benefits of investing African countries.After that,this paper puts forward suggestions for Chinese enterprises investing African countries,and presents policy suggestions on the ground of these suggestions for enterprises.Under the current financial crisis,the research of these problems can provide some helpful ideas.