A Comparative Study Of Chinese And Russian Foreign Direct Investment

China and Russian Federation both are important members of the “BRICS” andrepresentatives of developing countries and emerging market countries. Since lastcentury, China and Russian Federation’s economy both grow rapidly, so do the otherfields of the country. Russian Federation joined the World Trade Organization afterChina did. Since then, Russian Federation joined the process of economicglobalization. China and Russia Federation both have great influence in their ownarea and the whole world. In the field of OFDI, both China and Russian Federationgrow at a high speed.There are both similarities and differences between China and RussianFederation’s OFDI. China and Russian Federation are connected to each other ineconomy and OFDI. China and Russian Federation both confront the problem causedby the transition of economic system and complex and changeable internationalenvironment. Through comparing China and Russian Federation’s OFDI, the twocountries can learn from each other and to bring inspiration to solve their ownproblems. Therefore they can both promote their own OFDI, China and RussianFederation’s mutual direct investment and their own economic strength.This paper compares China and Russian Federation’s OFDI in many aspects indepth, and analyzes the cause of the phenomenon. In general, China and RussianFederation’s OFDI both grow very well. China and Russian Federation’s OFDI bothgrow rapidly since2000, the pattern of their OFDI is M&A, but the subject of theirOFDI is different, the industry and region of their OFDI are different as well.Recently, China and Russian Federation both increase their investment on the thirdindustry. China mainly invests in Hong Kong and developed countries, RussianFederation mainly invests in EU and CIS.The flow of China’s OFDI is bigger than that of Russian Federation. The stock ofChina’s OFDI was smaller than that of Russian Federation before2011. After2011China overtakes Russian Federation. The OI and matching rate between OFDI andGDP of China is smaller than that of Russian Federation. But both China and Russian Federation’s OND is small. We need to improve these.Both China and Russian Federation’s governments have taken measures toimprove their OFDI, but there still need more progress. Our government andenterprise both need to take measures.