A Study On China’s Resource-obtaining Foreign Direct Investment

Enough and stable supply of resources can ensure national economic operating safely and developing sustainable. As the first energy consumption country in the world, the gap of China’s resources supply and demand is bigger and bigger with the rapid development of industrialization and urbanization, especially the petroleum resources. It is a realistic choice both for our country and enterprise to get scarce resources by developing foreign direct investment.This article explores the problem of our country’s resource-obtaining foreign direct investment with the specific research object of China’s petroleum enterprises’overseas investment. It is based on the classic foreign direct investment theory and multinational company integration, combing and analyzing domestic scholar’related research and using variety of research methods including combining theory and empirical research, comparative analysis, etc.It is nearly20years for China’s petroleum enterprises developing their foreign direct investment from1993, and it approximately can be divided into2stages as below: the starting stage from1993to2001, and sustainable developing stage from2001to now. There are3distinguished features of China’s petroleum enterprises’ FDI. Most are state-owed enterprise, the main investment way is merger, the investment zone is wide but concentrated relatively and forming five strategic investment zones. We can learn from the yearly increasing of overseas equity production and remaining recoverable reserves that China’s petroleum enterprise’s FDI is effective. At the same time, overseas equity production share of the imports of crude oil production is increasing year by year, and it shows that foreign investment is effective for making up the gap of petroleum supply and demand, and ensuring the petroleum safety.There are still many challenges for China’s petroleum enterprises developing foreign direct investment. First of all, the following factors just as macro investment environment challenge are slowing the developing step of enterprise’s foreign investment including the fierce competition at home and abroad, foreign investment costs soaring and China threat theory. Secondly, there are also some restricted factors from the enterprise itself including narrow financing channel, lacking of investment experience and international operation managers, rigid management system, insufficient scientific research innovation, and so on. Finally, the government support security system is not sound.Throughout the history of foreign direct investment which is aiming at getting resources, some effective practices in common have been taking by the countries when developing their foreign direct investment, such as developing "the resources diplomacy", pushing resources-obtaining type of foreign direct investment with economic aid, providing a powerful policies support including law, finance, insurance and so on, developing strategic cooperation and alliance positively, encouraging to expand investment zone to spread risk, etc.Learn from the international investment experiences, and base on anglicizing and summarizing the main problems which are faced by overseas investment presently, our country’s oil enterprise should have a clear investment strategy, improve itself in every field and enhance the competitiveness of enterprises. Meanwhile, our government should provide the related policy to support its development.