Strategic Adjustment Of China's Outward Direct Investment Under The Global Financial Crisis

The financial crisis originating from American sub-crime crisis, which took place in the summer, 2007, is thought to be the most serious one after WWII. Both the global financial market and the real economy are full of pessimism. But every crisis has its end. The sensible investors with forward-looking insight should act before the market and make investment plans right now. The crisis re-values the global assets obviously. To a great extend, the bubble in industrialized economies has burst, and assets price in other economies has been adjusted. This gives a good chance to the NIEs suffering little during the crisis, especially China, to invest abroad. But, at the same time, uncertainties along with the crisis and market risks have not disappeared finally. Investors should watch their step closely when they make decisions to invest overseas.This article analyses opportunities and challenges China's outward FDI faces under this global financial crisis, the adjustment strategy China should take in the field of outward FDI management, and how to actualize this strategy in investment body, target market and other aspects. This article is divided into five parts.The first part gives a general introduction to this study.The second part shows how this financial crisis develops and its characteristics and analyses its microeconomic and macroeconomic influence on FDI.The third part is about the basic theories China obeys in its outward FDI and China's current FDI situation on four aspects, development speed, aimed region, investment pattern, and investment body.The forth part investigates influence the crisis puts on China's outward FDI. The challenges relate to risk evaluation, human resources, labor relationship, and investors' innovation ability. Different sectors own different opportunities, the following subpart shows them respectively.The final part puts forward China's adjustment strategies on outward FDI under this crisis. The government and corporations should develop suitable investment bodies respectively. Sector selection is another issue in China's outward FDI , different sectors should choose different region to invest and different investment pattern.