Study On China’s Foreign Contracted Projects In Venezuela

China’s Foreign Contracted Projects(FCP)have been in development for more than four decades since the Reform and Opening-up.Since the 1990 s,Chinese contractors have entered the Venezuelan market and so far,they have completed thousands of engineering projects in the country.At present,the political and economic situation in Venezuela is deteriorating.In order to make better decisions for Chinese companies that undertake projects in the country,this paper summarizes the history of development and current situation of contracted projects carried out by Chinese enterprises in Venezuela.Using SWOT analysis,this paper identifies the opportunities and threats they face.And by means of empirical analysis,after testing and revising the model,the factors affecting China’s contracted projects in Venezuela are found.On this basis,this paper makes recommendations to the Chinese companies.After SWOT analysis and research,it is believed that the strengths of Chinese enterprises mainly come from their strong engineering ability and project experience in the Venezuelan market,while the weaknesses include that the difficulties in making owners adopt Chinese standards,language communication problems and weak comprehensive management capabilities.The opportunities of the external environment mainly include economic cooperation between the two governments and the complementarity of the economic structure of the two countries;the threats encountered are reflected in Venezuela’s high inflation,exchange risk,weak infrastructure,political and security risks and excessive labor protection,etc.Through the test and adjustment of the model,the final results of the empirical analysis show that the Foreign Contracted Projects of the Chinese companies in Venezuela are affected by the inflation level of the country and the engineering strength exhibited by the Chinese enterprises in the global overseas contracting business.Based on these studies,from perspectives of both the present and the future,this paper puts forward strategies and recommendations for the companies.It will have certain theoretical significance and reference value for the further development of China’s international engineering contracting enterprises in the Venezuelan market.