| In October 2013,President Xi Jinping proposed for the first time in Indonesia to build the "maritime Silk Road in twenty-first Century",and bilateral relations between Indonesia and China rose to a comprehensive strategic partnership.Investment has become the highlight of bilateral economic and trade cooperation.From January to November 2019,India China trade totaled 72.4 billion US dollars.It is estimated that the total trade volume between China and India in 2019 will surely exceed the record value of72.7 billion US dollars in 2018.For many years,Indonesia has been one of the top 10 markets for overseas project contracting of Chinese enterprises.One belt,one road,the Silk Road Economic Belt and the maritime Silk Road in twenty-first Century,was formally proposed in 2013,along with the economic development of China entering the "new normal",the structural reform of supply side deepening,the "going out" strategy,and the remarkable improvement in international production capacity.It plays an important role in the economic,political and cultural exchanges between the East and the west by borrowing the ancient Chinese land and Maritime Silk Road,and gives it new connotations in the new historical period.With the saturation of world steel trade,the foreign trade environment of Chinese steel is facing more challenges.Chinese enterprises are still in the embryonic stage of foreign investment in iron and steel.However,in recent years,with the ASEAN country Indonesia vigorously attracting foreign investment,not only Indonesia's steel market has great attraction,but also the Indonesian government has formulated relevant goals and policies for the development of domestic steel market.At the same time,some Asian countries have entered Indonesia's steel market,which is a great opportunity for Chinese enterprises in terms of geographical advantages and risk prevention strategies.With the help of literature research and case study,this paper makes a comprehensive study and investigation on the risks faced by Chinese enterprises in Indonesia's investment in iron and steel industry.At present,Chinese enterprises' investment in Indonesia's steel industry mainly faces internal and external risks,which are mainly concentrated in the "short board" of China's steel industry development,such as the lack of steel supporting resources,high dependence on foreign raw materials;low industrial concentration,unreasonable layout;low added value of products,unreasonable structure;insufficient R&D investment,and overall production process Lagging behind.The external risks mainly come from the risks caused by the trade between countries,such as the risks brought by the environmental protection policies of the invested countries,the increasingrisks of foreign trade friction,the weak international bargaining power of Chinese steel enterprises and the competition risks of other foreign investors.In view of the above risks,this paper puts forward some countermeasures to reduce the investment risks,such as choosing the mode of M &A according to the types of risks,taking precautions against credit risks and political risks,strengthening the strength of the enterprise itself,strengthening the construction of talents to deal with the risks of overseas M &A and giving full play to the guiding role of the government in enterprise investment.This paper is divided into the following parts,the first part is the introduction part,which mainly states the writing background,research content,research methods and innovation of this paper,and summarizes the framework of the whole paper.The second part is the theoretical basis of resource seeking FDI.It introduces the concept and theoretical basis of FDI,as well as the concept and theoretical basis of FDI risk.The third part is the current situation and problems of China's stainless steel enterprises' foreign direct investment,and introduces the current situation of China's resource seeking foreign direct investment.At the same time,the development of stainless steel industry in China and the current situation of mineral resources in Indonesia are briefly summarized.Finally,the paper summarizes the risks that China will face when investing in Indonesian stainless steel enterprises.The fourth part is the case analysis of Hengshun Electric's acquisition of Indonesia nickel mining company.In the case analysis of M &A and new investment strategy,it mainly uses the investment cases of Chinese enterprises,and conducts targeted risk analysis and case study.In the fifth part,it gives the specific strategy suggestions for Chinese enterprises to invest in Indonesia steel nickel industry market.The last part is the conclusion part.This chapter mainly summarizes the previous chapters.The purpose of this paper is to combine with the practical case of China Hengshun Electric's acquisition of Indonesia nickel mine company,and through various difficulties and deficiencies encountered in the implementation of the project,in order to form a relatively complete evaluation system for investment in industry in Indonesia and provide reference for other enterprises. |
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