An analysis of macro mechanisms in the development of Chinese outward foreign direct investment

Abstract

This article discusses in detail the relevant mechanisms that affect the development of Chinese outward foreign direct investment (OFDI). It first describes the current situation in China and the influences these mechanisms have on the development of OFDI. It then points out current problems, discusses the effects of those problems, and illustrates the roles of the relevant mechanisms. China's foreign direct investment in Canada is growing, which has increased the economic ties between the two countries, but Chinese enterprises are facing strengthened scrutiny in the acquisition of Canadian companies. This article also examines the practices and experiences of other countries in this field and presents suggestions and ideas on how to establish and improve the mechanisms in the growth of Chinese transnational corporations.