The Marco Location Strategic Choice Of China's Foreign Direct Investment

With the deepening of import and export trade, trade friction is increasing; as China's economic development, shortage of resources become the bottleneck; with the reforming of industrial structure, transferring of excessive capacity becomes an inevitable choice of China. Therefore, foreign direct investment will gradually become the theme of "Go Global". Location choice in FDI as an important prerequisite for success must be considered. After 30 years of development, China's location distribution of FDI have tended to be widely, but also have exposed many problems, such as investment location with a high concentration, very little investment flowing to developed countries and frequently political risks. These are all issues worth concerning; this article studied on these issues.The first part is an introduction, including the significance of the topic and its background, related literature review, the structure, innovations and inadequatenesses. The second part is the theory of location choice of FDI. This paper analyzed the shortcomings and limitations of the previous theories and proposed the general macroeconomic model of FDI location choice. This paper argued that the location choice of FDI was determined by investment motives, internal resources and external environmental factors. The third part is the reality analysis of the location choice of China FDI. Through the reality analysis of the location choice of China FDI, this paper considered that China's FDI was concentrated too high and there was too little investment in developed countries. Then we studied the market-seeking FDI and resource-seeking FDI. The fourth part was the empirical analysis based on the second part and the third part. Through the location choice model, the paper measured various factors of China's location choice of FDI and made different empirical researches for different investment motives. The empirical study found that China's foreign direct investment location choice is positively related with the import and export, the resource abundance, numbers of foreign trade and economic cooperation zone. And it negatively related with the host country's market size and political risk factors. The fifth part is the conclusions, policy recommendations and summaries of the previous parts. China's market-seeking FDI should base on developing countries; resource-seeking FDI should take diversified global strategy; take full advantages of trade and economic cooperation zone, expand cooperation area; establish government services center, assessment center and security center against political risk.