Analysis On The Present Situation And Problems Of China’s Direct Investment In Mongolia

China is an important neighbor for Mongolia,and the two countries share a long border.At the same time,Mongolia is an important northern element of China’s "One Belt,One Road" policy.In recent years,China-Mongolia economic and trade cooperation has been improving,and the two countries strategic partnership is increasingly close,so Chinese enterprises are optimistic about market investment in Mongolia.There are mutual benefits for Chinese investors and Mongolian economic growth.However,there are still many problems and obstacles in China’s investment in Mongolia.This paper examines China’s direct investment environment—it’s status and problems in Mongolia—and aims to promote China’s further optimization of Mongolian direct investment.The paper is divided into six chapters:The first chapter is the introduction covering the background of the topic,the theoretical value of the study and the practical significance of domestic and foreign enterprises on investment cooperation in China and Mongolia aiming to establish the relevance of the research and explain the main shortcomings of previous studies;Chapter 2 is the theoretical basis where international direct investment has been sorted out and analyzed,and Chinese enterprises’ Mongolian direct investment background and problems are put forward with explanation of theoretical assumptions;Chapter 3discusses the direct investment in Chinese enterprises in Mongolia,and the development of the status quo covering Chinese enterprises development in terms of speed,size,investment,investment patterns and investment geographical distribution.This study found that as of 2012,China for 14 consecutive years has been Mongolia’s largest source of foreign capital.Based on investment in industry,mainly concentrated in the mineral,trade and catering industry.Chapter 4 analyzes the background of the direct investment of Chinese enterprises from the perspective of the political,economic and international environment in China and Mongolia.Chapter 5analyzes the problems of Chinese enterprises’ direct investment in Mongolia,and the direct investment structure of Chinese enterprises.The investment model is notlogical,Mongolia’sinvestment risk prevention mechanism is imperfect,and the formation of these problems is one of the most important reasons that Chinese enterprises direct investment in Mongolia is not deep enough.Chapter 6 aims to promote the timely control of the changes in the environment of Chinese enterprises’ foreign direct investment in order to make more calculated decisions on foreign investment cooperation and to effectively prevent external risks,so that Chinese enterprises in accordance with the “Go Out” policy are offered full protection from the Mongolian government and enterprises at the macro and micro level.The aim is to promote Chinese enterprises in Mongolia and suggest proper strategies.