Study Of Bits’ Influence On China’s OFDI

The Outward Foreign Direct Investment of China has been growing rapidly since the reform and opening.According to the 2015 Statistical bulletin of China’s foreign direct investment published by the State Council,the flow statistic of China’s OFDI has been up to 145.67 billion dollars,ranked to the second among the world.The investment of China has changed to be in from be out,which would be of great importance for China to adjust the industry structure and strengthen our status.At the same time we should be aware of the fact that,there are still challenges during the OFDI procedures.The investment environment should be improved to more FDI to flow in.Bilateral Investment Treat(BIT)acts an important role in protecting investors’ rights and avoid the coming risk during investment actions.Whether sign or not the BITs was one vital factor many essays emphasis.Considering the difference between BITs,the effects might be different.This article will focus on the difference of BITs,aiming to find out the links between BITs and China’s OFDI.By setting reasonable weight coefficient,weve built the index and calculate final scores.The results show that,there are 17 BITs score over 70,33 BITs score between 60-70,and 34 BITs score between 50-60,another 19 BITs score below 50.According to the results based on data of BITs,we find that different BITs do have various affections on China’s OFDI,which means,the more one BIT contains,the much investment will flow in that country.To promote the level of China’s OFDI,we suggest that updating the treaties and adopting Negative List may be useful.