TITLE:
Study on the Outward FDI in the USA of Chinese Enterprises
AUTHORS:
Shuangqin Liu, Zhi Li
KEYWORDS:
Outward FDI in the USA, Chinese Enterprises, Obstacles, Problems, Countermeasures
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.3 No.7,
July
14,
2015
ABSTRACT: With the rapid economic development, China
has sufficient foreign exchange reserves. Together with the appreciation in
Chinese currency and other conditions, more and more Chinese enterprises invest
overseas especially in the USA. Based on the statistics of the National Bureau
of Statistics of the People’s Republic of China, in 2012 and 2013, among the
top 3 countries in which Chinese enterprises have invested, theUSA ranked the second with US$ 4047.85 million and the
third with US$ 3873.43 million respectively.
Chinese enterprises’ FDI in the USA has been mutually beneficial to both China
and the USA. However, Chinese enterprises’ FDI in the USA has encountered a
variety of obstacles from the USA including American government’s interfering
with FDI by political methods, difficulty to enter into some industries, and America’s
protectionism. On the other hand, those Chinese enterprises also have some problems
in their outward FDI in the USA such as unstable development trend of FDI,
enterprises of small size with the privately-owned enterprises as the main
body, and unfamiliarity with the related policies and laws. What countermeasures
should Chinese enterprises adopt to deal with the obstacles or problems? This
paper aims at analyzing the obstacles from the USA and the
problems existing in those Chinese enterprises’ FDI in the USA by means of
SWOT method and puts forward some corresponding countermeasures for the Chinese
enterprises to conduct their outward FDI in the USA more effectively. The
conclusions can be used for reference by companies which plan to invest in the
USA or other foreign countries.