Research On The Agriculture Investment Of China In Central&Eastern European Countries

With the prosperous development of Chinese economy, the outward direct investmentof Chinese company increased dramatically. In2013, the outward direct investment ofChina amounted$90.17billion, which increased by16.8%compared with the yearbefore. China is now world’s third largest investor with expanding investing scope,increasing investing amount and diversified investment destination. Following theimplementation of the “One Belt&One Road” strategy and the upgraded “Go Global”strategy, there shall be more Chinese companies seeking for oversea investment, whichwill result in the new enlargement of Chinese outward direct investment.Agriculture “Go Global” is one of the most important parts of Chinese overseainvestment cooperation strategy. In the meantime, Central&Eastern Europe (CEE) isone of the most important regions for Chinese oversea economic cooperation strategy.This thesis analyzes the selection of specific agriculture industries and countries forChinese companies investing in Central&Eastern European countries (CEEC), whichis of great importance to the filling of domestic research blankness in this field and thedevelopment of Chinese oversea agriculture cooperation.Firstly, the thesis demonstrates the feasibility of Chinese companies investing in CEEC,based on the qualitative analysis about major international investment theories as wellas the development and natural endowment of the economy and agriculture in Chinaand CEEC. Secondly, the thesis analyzes the selection of specific agriculture industriesfor Chinese investment, according to the comparison results of the comparativeadvantage of relevant agriculture products of typical major agriculture countries inCEE. The thesis suggests Chinese companies take industries of cereal planting,oil-bearing corps planting, animal husbandry and so on as the priority for investment.Thirdly, the thesis introduces the Gravity Model to analyze the investment potential ofeach CEEC and clarifies the selection of specific investment destination according tothe analysis result. The thesis suggests Chinese companies consider Poland, Romaniaand Serbia as the priority for agriculture investment. Finally, according to the researchconclusion and the author’s working experience in CEE, the thesis proposes severalsuggestions from government and private level.It is author’s hope that the analysis of this thesis can provide feasible reference forChinese companies making agriculture investment in CEEC and help Chinese companies preventing potential risks, seizing investment opportunities as well asimplementing mutual benefits, which is finally in accordance with China-CEECoverall cooperation strategy.