Research On The Effect Of Chinese Companies Investing In Latin America

Since 2010,Chinese enterprises significantly increased direct investment in Latin American countries,among which,Brazil,Peru,Argentina are listed as China's major overseas investment countries.According to statistics published in 2014 by the National Bureau of Statistics,the index of China's direct investment reached 10,547,390 billion USD,accounting for 8.6% of net overseas investment.This means that Latin America has turned into an important zone where China realizes the “Go Global” strategy.However,many Chinese investing enterprises haven't achieved ideal results in Latin America.Several enterprises encountered acclimatization and situational challenges,such as Shougang Corporation and the associated workers' strike in Peru.Huawei stands out among Chinese investing enterprises in Latin America reaching 20 years dedication,market penetration,and a reputation covering 65% of Latin America.Their successful story underlines their valuable operational models and concepts,such as taking customer as the center,adaptive operation,strength of core technology,obedience of law,and intimacy to the local government,strategies worth adapting in other Chinese investing enterprises in Latin America.After analyzing and studying mainstream news agencies,such as El Economistic of Mexico and El Commerce of Peru,it is obvious that the majority of Latin American countries hold a positive attitude towards Chinese investment enterprises in Latin America.Due to the huge difference of political backgrounds and regulations between China and Latin America,Chinese enterprises interested in investing in Latin America should not only understand local languages,culture and commercial customs,but also focus on creating mutual benefits and a win-win outcome with Latin America,aiming to promote diversification of investment and deepen social responsibilities in areas such as environmental protection.The Chinese government should vigorously strengthen the integration of resources between government,businesses and academics and take full advantages of the strengths from government and private think tanks,both of which will provide strong support to the “Go Global” strategy of Chinese enterprises.Only by this way will Chinese enterprises be able to achieve substantial development in Latin America.