The Analysis On The Selection Of Foreign Direct Investment Mode In China's Communication Equipment Manufacturing Industry

In recent years,with the development of the liberalization of trade and science and technology,history of the development of the globalization tide and trend of globalization makes the enterprise can be looking for worldwide market and production location,after the accession to the WTO,China,under the government positive policy to encourage and guide Chinese enterprises to actively carry out foreign direct investment,China's foreign direct investment flows rise significantly.OFDI is an important way for Chinese enterprises to enter the international market,but the business environment faced by enterprises in OFDI is very complex,and many factors need to be taken into consideration when making strategic decisions.OFDI entry mode selection is one of the most important decisions in an enterprise's international business strategy,which will further affect the efficiency of enterprise's foreign investment and corporate value.Therefore,this paper chooses the communication equipment manufacturing industry which has witnessed rapid development of OFDI in recent years to study and analyze the choice of overseas entry mode of China's communication equipment manufacturing industry and the influencing factors.The article adopts the method of case study,combined with other scholars to study on the model of investment into by Huawei and ZTE communications equipment manufacturing investment process analysis,including investment of time,location,entry mode summarizes two telecommunications companies such as the characteristics of different stages of development of foreign entry mode choice and the influencing factors.Based on the analysis of the investment history of ZTE and Huawei,this paper believes that both the OFDI modes of the two enterprises have gone through the process from new construction to merger and acquisition.In the initial exploration stage,Huawei and ZTE first adopted the contract mode to get familiar with the overseas market,and then adopted the method of establishing new subsidiaries to enter the developing country market after having certain competitiveness.After further development and expansion,Huawei and ZTE began to acquire strategic assets by acquiring excellent foreign enterprises.The main factors influencing the choice of entry mode of these two enterprises are internal factors such as enterprise size,international experience and external factors such as cultural distance,strategic assets and national policies.