Study On Foreign Dircet Investment Environment Evaluation System Of China’s Mining Enterprises

With the sustained, rapid growth of the economy, China’s demand for energy andmineral resources is also continuous. Recent years, with the support of "going out"strategy, the global allocation of resources and markets, including the allocation ofenergy and mineral resources, has become an inevitable choice for Chineseenterprises for sustainable growth. Although the importance of international energyand mining resources have been fully aware of, and even risen to the national strategiclevel, there are still many inadequacies for Chinese enterprises both in theory andpractical operational level compared to the developed countries and regions.Internationalization is not that smooth, such as large resistance, low success rate andhigh cost in ‘going out’, which reflected most vividly in a wide range of reports ofChinese enterprises in overseas mining investment. China’s mining enterprises’unreasonable evaluation of investment environment in the host countries leads tofailures in the investment behavior in “going out”. The purpose of this paper is todevelop a set of investment environment evaluation system based on thecharacteristics of China’s foreign mining investment and China’s national condition.This system which is highly suitable for national strategic interest, national conditionswill promote the framework of foreign investment index system for miningenterprises.Combined with domestic and international mainstream evaluation systems andproblems in China’s mining enterprises’ foreign investment, this paper aims toestablish the evaluation system which is comparatively in line with our owncharacteristics. Then uses analytic hierarchy process to make assignment and calculateweight index system. Finally, in the empirical part, the paper selects the top eightcountries of global iron ore reserves: Australia, Ukraine, Russia, Kazakhstan, Brazil,the United States, Canada and India, for evaluation of the iron ore investmentenvironment. According to the evaluation system, after scoring and ranking, Australia,Ukraine and Russia are among the top three whose investment environments are suitable for mining companies to invest.The result in this paper is comparatively in line with the situation and trend ofChina’s foreign mining investment, which is also consistent with the generalinvestment evaluation. So the index we give out has strong application and objectivity,which can further improve the foundation of investment environment evaluation forChina’s mining enterprises.