The Analysis On Influencing Factors And Potential Of The Investment From China To The “One Belt And One Road” Countries

China proposed the “One Belt and One Road” strategy in 2013 when the international situation was changing complicatedly and the process of global integration was becoming faster.The main goal of this strategy is to intensify the cooperation between countries that along the “One Belt and One Road”,not only in economy,but also including politic,culture and so on,in order to realize common development.Obviously,economy should be the start-up field if our country wants to push the whole strategy forward and Outward Foreign Direct Investment(OFDI)would be a good and effective way to get further cooperation in economy.As the collective data shows,the ratio of the quantity of the investment from China to the “One Belt and One Road” countries is quite low though the absolute amount of the investment is very big and the related growth rate is high.And the distribution of the investment is not even with the developing countries and countries in southeast Asia absorbing most of the investment..Furthermore,China’s investment goes into low-end industries mainly,like resource-intensive and labor-intensive industries.Through establishing the gravity model to enforce empirical analysis,we can find the main factors of the investment from China to the “One Belt and One Road” countries are the economy level,labor cost,resource endowments of the host countries and the foreign trade scale between two countries.And for different regions along the “One Belt and One Road”,the influencing factors are also different.For Mongolia and Russia,the Gross Domestic Product and the labor cost of host countries are the most important two factors.In central and eastern Europe,China’s investment is mainly driven by the condition of infrastructure,technology of host countries and the foreign trade scale.Meanwhile,the main goal of China’s investment in central Asia,western Asia and the middle east is to get enough resources.The investment activities in southeast Asia are driven by several factors,including the level of economy,labor cost,resource endowments,infrastructure conditions and export scale.And for south Asia,China’s investment is influenced by the level of economy in host countries and the export amount of China.As what we can find from the result of investment potential,China’s investment is relatively insufficient while the scale of investment in Mongolia,Russia,central and east Europe,southeast Asia and south Asia is relatively reasonable.In order to push our companies to enlarge the investment scale along the “One Belt and One Road”,the government can do the following things: firstly,perfect related service system;secondly,guide companies to arrange future investment soundly;last but not least,build bridges between the strategy and the development of China.