The Study On Foreign Direct Investment Location Choice Of Chinese Copper Enterprises

With the sustained and rapid development of Chinese economy, the growth ofdomestic economy inevitably increases the demand for mineral resources. Thecontradiction between supply and demand of mineral resources is increasinglyprominent, because of the limitation of domestic resources. For decades, theimplementation of China’s strategy of "going out" not only improved the level of OFDI(Outward Foreign Direct Investment) on the whole, but also pulled OFDI in the miningindustry. More and more mineral enterprises "go out" to develop overseas resources,including copper enterprises, copper enterprises got a certain development of OFDI. Interms of the current domestic economic development, shortage of copper resources ismore outstanding. The copper resource is the third big shortage of mineral resources andhighly depends on overseas resources. Over the years, due to a lack of theoreticalguidance and policy guidance, enterprises of OFDI in copper mine appeared variousproblems, especially the investment location choice, more concentrated in the closergeographical position and similar development level countries, to some extent, limitsthe business expansion of the global market.In this paper, from the geographical perspective, on the basis of objectivelyexpounding the world copper industry development and Chinese domestic coppersupply and demand, the author analyzes the copper enterprise’s OFDI in China andpoints out that although the copper enterprise’s geographical distribution of ODFI ismore widely, most of them are distributed in developing countries such as Asia andAfrica, the geographical distribution is concentrated. And further emphasizes theimportance of the copper enterprises OFDI location choice. Using the Location Theory,the Monopolistic Advantage Theory, the Eclectic Theory of International Production,the Investment Development Cycle Theory and the Theory of Motivation FactorsCombination, the author analyzes the factors that influence copper enterprises OFDIwith the view of investor and host country, and then on the basis of target countries thatcan on behalf of the locations which copper enterprises choose, using the factor analysismethod for empirical analysis, and conducts a comprehensive ranking in these selectedcountries. The results show the influence degree of different common factor, and theOFDI of copper enterprises should consider the political and economy factor firstly, andthen should pay special attention to attractive factor to foreign investors and cost factor. On the basis of studies, some constructive advices are provided, in order to expandOFDI scale in the countries or regions with rich copper mine resources, the copperenterprises should consider determinants of different target market; while consolidatingand expanding investment in developing countries, especially give full play to thechoreographically advantages, strengthen invest in rich-resources neighboring countrieswith the opportunity to “One Belt and One Road”; and the government should providesupport from several aspects to perfect the security system,such as information services,consulting services and funds.