China's Direct Investment Research Towards The Eu

Starting from a very low base, Chinese FDI in the EU is still relatively insignificant compared to intensive China-EU economic and trade relations. In the background of EU sovereign-debt crisis and Chinese blooming OFDI, this paper firstly focuses on the development and characteristics of China’s OFDI in EU. Then the main motivations and drives of China’s OFDI are discussed, based on the empirical analysis with the method of gravity model, to find out the decisive factors related to the FDI of Chinese enterprises in EU countries. After the analysis of advantages and disadvantages for the development of China’s OFDI to EU, the paper concludes with suggestions for Chinese FDI in the EU regarding to the government policies, enterprise strategies and location choices.