Location Selection Of China’s Automobile Industry’s FDI From The Perspective Of Value Chain

With the development of China’s automobile market,the competition between domestic and foreign brands and joint venture brands is becoming increasingly fierce.In order to enhance their own competitiveness,the independent brand car has carried out a large number of overseas investment.However,paper found that China’s automobile industry investment location selection is too concentrated and lack of rational distribution in the current.So,How to choose the investment location in China’s automobile industry,This paper points out that it is more conducive to improve the competitiveness of automobile industry when we choose the investment location from the perspective of the value chain.The investment location selection problem is transformed into value chain location selection problem,making enterprises take advantages of global resources to enhance the value chain competitiveness so as to improve the overall competitiveness.This thesis takes the improvement of China’s automobile industry value chain competitiveness as the theme,combined with the location choice of foreign direct investment in China’s automobile industry,using the case-based analysis and comparative analysis to start the research as follows: firstly,this paper analyzes the present situation,characteristics and location investment environment of FDI in China’s automobile industry;secondly,this paper analyzes the characteristics of each part of the automobile industry value chain from basic activities and auxiliary activities,based on the comparative analysis of the domestic and foreign value chain,the paper points out the defects of the competitiveness of China’s automobile industry value chain;Thirdly,it explains the relationship between the promotion of the value chain competitiveness and the location selection;finally,take the Geely automobile investment in Sweden as an example,basing on PEST analysis,combined with the R&D and manufacturing of parts and components to analyze the Swedish automobile industry investment environment and the relative advantage of Swedish automobile industry value chain.,it explains a fact that Geely puts R&D in Sweden in order to enhance competitiveness of the value chain.