Research On Economic Effects On Home Country Of China's Direct Investment In Germany

China and Germany have established diplomatic relation for more than 40 years,during which the relation between the two countries has continued to make a breakthrough progress.In 2010,China and Germany established a strategic partnership,this relation was promoted as a looking forword strategic partnership in 2012,and as a comprehensive strategic partnership in 2014.With the continuous development of this relation,Germany has become one of the main options for China's foreign direct investment.Especially since 2009,China's direct investment in Germany began to enter a phase of rapid growth;Investment stock reached $5.78 billion at the end of the 2014.The World Economic Forum 2014-2015 Global Competitiveness Report shows,Germany is ranked fifth in the world's most competitive 144 countries and regions,and being the center of the European economy,Germany has developed infrastructure and high quality of human resources,all these advantages are attracting a large number of China's enterprises to invest in Germany.The rapid development of China's direct investment in Germany shows that China's enterprises are ready to further explore the German market.Therefore,it is necessary to study the China's direct investment in Germany at this stage.In this paper,the rapid development of China's foreign direct investment is setted as the macro background.Under the trend of the rapid development of China's direct investment in Germany,guiding by the theory of the economic effects of the home country of FDI,the author sorts out the history and current situation of China's direct investment in Germany.The characteristics of China's direct investment in Germany is explored from six aspects,which are the investment scale,the way of investment,the investment industry,the investment location distribution and the position change,and the impact of China's direct investment on China's economy is analysed empirically from the trade scale,scientific and technological progress and industrial structure three aspects.The study found that,Firstly,China's direct investment in Germany has promotion effect on China's exports to Germany and vice versa;China's direct investment in Germany has promotion effect on China's imports from Germany and vice versa.Secondly,China's direct investment in Germany has no significant role in promoting China's scientific technological progress,but the latter has promotion effect on the former.Thirdly,China's direct investment in Germany has promotion effect on the adjustment of China's industrial structure while in turn this promotion effect is not significant.Finally,thorough analysis on performance path of promotion effect is made,and basing on the analysis,several recommendations on China's direct investment in Germany are provided.