China’s Outward Direct Investment And Host Country’s Industrial Upgrading Under The "Belt And Road" Initiative-Experience From Countries Along The "Belt And Road" Route

The "Belt and Road Initiative(BRI)" is the abbreviation of "Silk Road Economic Belt" and "21st Century maritime Silk Road".BRI emphasizes the pursuit of China’s economic development while taking into account the legitimate concerns of countries along the "Belt and Road",and promoting the common development of China and countries along the "Belt and Road".Win-win cooperation is the core idea of the Belt and Road Initiative.In 2016,China’s investment stock in the Middle East surpassed that of the United States,ranking first in the world,and BRI has made great progresses..With the increasing trade friction between China and the United States in recent years,seeking new markets for China’s exports and investments is of great strategic importance.Unlike other countries in Europe and the United States,Chinese government has always advocated the principles of independence,equality and mutual benefit inbilateral interactions.On this basis,President Xi Jinping put forward the idea of building a community of shared future for mankind.With this idea as a guiding basis,China is actively developing economic cooperation with countries along the Belt and Road to build a mutually beneficial community of shared destiny.Therefore,it is necessary to understand the current situation and vision of China’s investment in countries along the "Belt and Road" and the effect of China’s investment on promoting the industrial upgrading of both sides through this research,and to find out the directions for future improvement.This paper is mainly based on theories in international investment,and uses literature review,comparative research and case studies to analyze the current situation and effects of China’s investment in countries along the "Belt and Road".The data required for empirical anlaysis were collected through public databases such as World Bank,China’s Ministry of Foreign Affairs,China’s Ministry of Commerce,etc..This research finds that China’s investment into the " Belt and Road" countries has contributed to the development of both China and the host countries:China’s investment has effectively promoted the industrial upgrading of host countries;at the same time,the investment has enhanced the competitiveness of China’s domestic enterprises through the springboard effect,optimizing the domestic industrial structure,and technological upgrading of domestic enterprises.In addition,countries along the "Belt and Road" have different levels of economic development and cultural characteristics,both of which influences the effectiveness of China’s investment.Therefore,the investment strategies for different countries cannot be lumped together,but should be developed separately to fit the country’s situation.