Research On China's Mining Direct Investment

The growth of economy China has become the major energy and raw materialimporting countries in the international market. The other hand world’s leadingmanufacturing, producing and exporting country. Chinese north neighbor of Mongolia,have congenital uniquely natural resources, but light industry and manufacturingdevelopment is very slow. But between Mongolian and Chinese economies havecomplementary relationship. In recent years, reasons like complementary economic models,geo-close relationships, and improvement of the investment environment, continue tostrength economic and trade relation between two countries. China has10consecutiveyears become the largest investor country in Mongolia.With in quick development of economic and trade relations between two countries,some problems began to be exposed. Because of current Chine’s investment structure toMongolia is not conducive, so Mongolia couldn’t establish more rational industrialstructure. The Mongolian government has long encouraged exploration and developmentof mineral resources, and ignored the other areas development. Mongolia has a singleeconomics structure. China’s direct investment in Mongolia are mainly distributed in thefield of resource-intensive and labor-intensive industries, Which are mainly concentrated inthe mineral resource development and trade, a negative impact on the economicrationalization of the structure of Mongolia to a certain extent.In order to promote economic cooperation between China and Mongolia and a bothwin situation, We need to analyze from China to Mongolia’s mining direct investmentactivities. This article on the “Chinese direct investment in Mongolian mining” using themethod of combining theoretical analysis and empirical analysis. First discusses the theoryof international direct investment and development, secondly analyze of the Mongolianmining direct investment’s environment. Then analyze in the direct investment’s impactand problems of the Mongolian mining, Finally issues suggestions to promote cooperationin mining development to reach the health of the direct investment in Mongolia, the goalsof rapid development, and achieve to both win of Mongolia and China.