The Strategy Of Market Access About Chinese Firms In The Countries Of The Belt And Road Initiatives

Since the 1990 s,there has been frequent capital flow around the world,the international industrial structure and industry layout have developed to a deeper level,the upstream and downstream links are closer,the global supply chain is interdependent,and the degree of economic globalization has greatly deepened.After China proposed the Belt and Road Initiative in 2013,Chinese companies’ enthusiasm for foreign investment has been further enhanced.The newly released "Statistical Bulletin of Foreign Direct Investment" shows that my country’s foreign direct investment flow exceeded US$140 billion in 2018,stabilizing in the second place in the world.Among them,the investment flow to the countries and regions along the "Belt and Road" was 18 billion US dollars,accounting for 12.5%.Under the downward trend of overall investment after 2016,investments along the “Belt and Road” are gradually adding important sources of investment flow.Foreign direct investment is essentially a flow of international capital elements.China’s foreign investment not only stimulates the economic role of the state-owned enterprises for investment purposes,but also internalizes and upgrades the industrial structure of the country,especially the international production capacity and resource cooperation in the countries along the "Belt and Road" is of great significance to the use of China’s advantageous industries..However,Chinese enterprises’ investment in countries along the “Belt and Road” has not been smooth,and there have been significant economic losses.The reason is that the market economy environment of countries and regions along the “Belt and Road” is complex and diverse.There are many underdeveloped countries and developing countries with potential political turmoil.These uncertainties may hinder Chinese companies’ foreign investment The enterprise caused significant losses.Enterprises endogenously driven and encouraged by external policies to decide what investment model to choose when carrying out foreign investment actions in countries and regions along the Belt and Road.In reality,many investment models have been adopted,such as equity investment and non-equity investment.However,the impact of the two models of greenfield investment and cross-border mergers and acquisitions on the enterprise is irreversible,and it has a critical effect on the enterprise performance and long-term development of the overseas market.It is necessary to study the choice of these two models.The main content of this article is based on the theoretical analysis and empirical testing around the two investment models of greenfield investment and cross-border M&A.Chapter 1 Introduction introduces the theoretical and practical significance of research background and research issues.Chapter 2 is a literature review.Chapter 3 uses multi-angle data to describe the current state of investment in my country.Chapters 4 and 5 are theoretical analysis and hypothesis and empirical testing.Finally,Chapter 6 summarizes the conclusions of the full text and proposes policy recommendations.The possible innovations in this paper are the research data and research perspective.Unlike the previous literature that only used macro data to study the investment model of one country to many countries or the regional investment model limited to a province in China,this article uses the list of investment companies published by the Ministry of Commerce and merges with the Chinese industrial enterprise database to obtain highly likely Samples,comprehensive macro data,and empirical research on the impact of micro factors and macro factors and their cross-effects on investment models.From a research perspective,my country has studied foreign investment models and focused on the study of cross-border mergers and acquisitions models.However,green land investments with a large number of investment projects are not included in the research framework for comparison.However,the literature comparing greenfield investment and cross-border M&A does not focus on the countries along the “Belt and Road”,which are very differentiated,so this article enriches the empirical evidence in this research perspective.After empirical testing,the following conclusions are obtained: Enterprises with high productivity,capital intensive and large scale are more inclined to adopt the investment model of cross-border mergers and acquisitions to enter the market along the "Belt and Road".The possibility of Chinese enterprises choosing the M&A model increases with the increase of technology and R&D resources in countries and regions along the “Belt and Road”.Chinese enterprises tend to use the cross-border M&A model to enter countries with better system quality along the “Belt and Road”.When the system difference between the countries along the “Belt and Road” and China is small,Chinese enterprises tend to adopt the greenfield investment model.Enterprises with higher productivity tend to enter the countries along the “Belt and Road” with higher system quality through greenfield investment mode.Enterprises with higher profit margins tend to enter the countries along the “Belt and Road” with higher system quality through crossborder M&A.Enterprises with higher profit margins tend to enter the countries along the route with rich R&D and technical resources through cross-border mergers and acquisitions.