Research On OFDI Mode Selection Of Resource-based Industries In "the Belt And Road" Countries By Chinese Enterprises

In today’s world,international trade and investment are developing towards a deeper level.Under the trend of economic globalization,More and more enterprises join the ranks of foreign direct investment.Foreign direct investment(OFDI)plays an important role as a bridge in the process of deep economic integration between China and other countries in the world.It is an inevitable choice for enterprises to seek resources,develop markets and acquire technology.In 2000,in order to change the disadvantage of China’s export processing trade at the low end of the value chain,the "going out" strategy was formally elevated to the national strategy level,and the government continuously encouraged qualified enterprises to go out.In recent years,China’s foreign direct investment has gradually deepened,opening up a comprehensive and multi-level situation of foreign direct investment.China is a resource-scarce country with a high degree of dependence on resource imports.Therefore,OFDI in the foreign resource-based industry is one of the main forces driving the continuous growth of my country’s investment scale.The "the Belt and Road" countries have the advantage of relatively high energy and resource endowment,but the industrial level is low,and the infrastructure construction is in urgent need of metal and mineral resources.Direct investment in resource-based industries in the "the Belt and Road" countries can not only help improve the exploitation and utilization rate of these countries’ resources,but also help China break through the restrictive development bottleneck of resource shortage.For enterprises,the choice of foreign direct investment mode is the first difficult problem faced by enterprises in the process of "going out".If they make a wrong decision,it may even lead to a difficult situation of losing everything.However,because China’s foreign direct investment is not mature,the experience that enterprises can use for reference is not much.In reality,when many Chinese enterprises direct investment in resource-based OFDI industries in "the Belt and Road" countries,there are many cases of investment failure due to the wrong decision-making of mode selection.Therefore,it is necessary to study the choice of enterprises’ foreign resource-based industry investment mode.This article restricts the investment model to greenfield investment and cross-border mergers and acquisitions,and divides the research perspective into micro and macro aspects to analyze the factors influencing the choice of investment modes for Chinese enterprises to enter resource-based industries in "the Belt and Road" countries.This paper firstly summarizes and sorts out the existing literatures and theories at home and abroad.Then analyze the overall situation of China’s OFDI,and further explores the situation of China’s direct investment in "the Belt and Road" countries.On this basis,it focuses on analyzing the resource situation and characteristics of "the Belt and Road" countries,and points out the necessity of China’s resource-based industries OFDI in "the Belt and Road" countries.Next,taking178 data of our country’s direct investment in resource-based industries in "the Belt and Road" countries from 2005 to 2019 as the research sample,using Logit regression model for empirical testing,the following conclusions are drawn: at the micro level,the larger the scale of the enterprise and the larger its operating income,the more preference it is to choose greenfield investment models to enter resource-based industries in "the Belt and Road" countries.From a macro perspective,the higher the institutional quality of the host country is and the greater the distance from China’s culture,the more enterprises are inclined to choose the cross-border M&A mode to invest in the host country’s resource-based industries.In addition,there is no significant correlation between the economic level of host countries and enterprises’ choice of resource-based OFDI model in "the Belt and Road" countries.Then,this paper chooses two typical cases--Trina Solar’s construction in Vietnam and HBIS Group’s acquisition of Smederevo Steel Plant in Serbia for case analysis.Finally,the following suggestions are put forward: enterprises should choose suitable investment mode according to their own strength and combined with the market environment of the host country;The government should strengthen guidance,accelerate the construction of an information exchange platform,and establish an OFDI risk early warning mechanism to help enterprises better go global.