Analysis Of China's Direct Investment Model And Trade Effect In Africa

In September 2018,the Beijing Summit of the Forum on China-Africa Cooperation was successfully held,and China and Africa reached consensus.The successful convening of the Beijing Summit means that the cooperation between China and Africa will be further consolidated and the China-Africa friendly cooperation plan will be more and better.In 2017,Chinese companies' investment flows to Africa grew rapidly,and the investment field was relatively concentrated.Africa is currently the fastest growing target market on five continents.In recent years,Africa?s economic and social development has entered a new stage,macroeconomic policies have continued to improve,and more and more African countries have implemented policies to attract foreign direct investment,especially China?s direct investment in Africa.At this stage,China is facing a critical period of economic restructuring and upgrading.How to reduce production capacity and realize the shift of industrial focus,shifting from the secondary industry to the tertiary industry,and escaping the middle-income trap are important issues that need to be resolved at this stage.problem.African countries have huge untapped markets,rich mineral resources and oil resources,and low-cost labor.At the same time,as far as the African market is concerned,a large number of unemployed people urgently need to solve the employment problem.Although China?s direct investment in Africa accounts for a small part of China?s total foreign direct investment,its growth rate is the fastest.The political friendship between China and African countries has promoted the “going out” of Chinese enterprises and opening up to African countries.The market will achieve a win-win cooperation between China and Africa.Based on the background of good cooperation between China and Africa,this paper combines the existing research results related to China's direct investment in Africa.Briefly describe the basic situation of China's direct investment in Africa at this stage.Next,we will study the problems faced by China in direct investment in Chinese enterprises in Africa and the risks China faces in direct investment in Africa.Then study the entry mode of China's direct investment in Africa: “Angolan model”,cross-border M&A and joint venture,greenfield investment model,creation of economic and trade cooperation zone,etc.,and illustrate some different entry modes.On the basis of China's model of direct investment in Africa,it is studied whether China's direct investment in Africa has an impact on imports and exports between China and Africa.It is verified by empirical methods and finally gives policy recommendations.