Research On China’s OFDI To The Europe Union

China’s economy has been involved in the globalization more deeply ever since joining the WTO, and so has the development of Chinese corporations. They are making vast investments overseas for resources, brands and technology to remain competitive internationally. China has made impressive achievements in foreign direct investment after more than twenty years’experience. China’s investment has reached almost177counties and districts all over the world, but the majority of the money flows to Asia and Latin-America while only a little fraction flows into developed countries in Europe, which is disproportionate with the China-EU trade value and EU’s huge investment in China. The fiscal crisis in Europe Union has opened great opportunities for China to buy some strategy assets since asset prices may be undervalued when liquidity insufficient in the market. And since EU has been filing for anti-dumping case against China in more industries, many Chinese companies have been considering local production in EU. In such cases, it is absolutely necessary to look into China’s outward foreign direct investment to the EU. This paper intended to investigate the development and current situation of China’s OFDI to the EU and find the opportunities and constraints for further development and tries to bring out proposals to help Chinese firms to get access to EU market by investment.This paper falls into six chapters. Chapter One overviews the research background and earlier studies including theoretical support for China’s OFDI. Chapter Two evaluates the development of China’s OFDI to EU and the pattern of the inflow and comes to the findings that China’s OFDI to EU, though growing remarkably fast, is still modest and has been limited in country distribution and has targeted in service, manufacturing and finance sectors. Chapter Three concludes the four kinds of motivations for Chinese firms to invest in EU. Chapter Four analyses the opportunities for the Chinese investment in EU and the constraints as well. Finally, Chapter Five ends with proposals and suggestion for both government and the companies to further investment choices. The conclusion of this paper is presented in Chapter Six.