Influencing Factors Of Hindering Chinese Enterprises' Outward Foreign Direct Investment

Chinese foreign direct investment(OFDI)flow ranked in second place in global countries(regions),Chinese OFDI stock size has exceeded one trillion US dollars,and Chinese OFDI more than foreign direct investment,and the current domestic overcapacity situation will encourage Chinese enterprises to invest abroad.However,with the development of Chinese OFDI,failure investment projects becomes more and more,so if we can understand which factors affect Chinese OFDI,it will help our company to provide more effective strategies and reduce investment risks.In this paper,we through case study and empirical analysis to find which factors affect Chinese OFDI.This paper has collected a total of 1275 cases,consist of 130 Chinese OFDI failure projects and 1145 successful projects from 2005 to 2014.The paper analyzes the factors such as investment industry type,investment entry mode,investment amount,host country category and nature of the enterprise ownership,which possible affect Chinese OFDI.Because Chinese OFDI projects are mainly concentrated in the developing countries,we will separate analysis the case of Asia,Africa,Latin America and Caribbean.By using the Probit model to find out the methological regression analysis,the factors that affect the investment will be examined.The empirical results show that the factors such as investment amount,investment industry and host country are the main influencing factors of Chinese OFDI.The mode of ownership of enterprises and the mode of investment entry do not affect Chinese OFDI significantly.The investment entry mode is the influencing factor of Chinese market-seeking enterprises OFDI.Based on the above analysis results and the actual situation of Chinese enterprises,this paper puts forward some suggestions from the macro and micro aspects.As for the Chinese government,our government should try to streamline the domestic approval regulatory procedures,improve efficiency,subdivide the location and industry distribution,to improve Chinese OFDI statistical system;As for the host country,Chinese company should be grasp the political measures of host country,which can reduce the political risks,also they should respect the different cultures to reduce the friction;As for the company,Chinese company should enhance the international investment management capacity,focusing on cultivating international investment talent,enhance international cooperation and communication,avoid blind large-scale investment to reduce the "unfair competition" suspects.