Analysis of the impact of China's OFDI on China's export trade

Abstract

This article aims to analyze the impact of China's outward foreign direct investment (OFDI) on China's export trade. In theoretical analysis, the motives behind China's OFDI were explored, including seeking resources, expanding the market, enhancing technology and management capabilities, and promoting enterprise internationalization. In terms of positive impact, the positive impact of OFDI on expanding export markets, enhancing product competitiveness, and optimizing industrial structure was discussed. However, it also pointed out negative impacts such as backflow effects and trade protectionism. By taking Huawei's investment in the African market as a case study, this paper analyzes its impact on expanding export markets, upgrading technology, increasing export added value, and driving the development of related industries. In the analysis of influencing factors, multiple factors such as policies, markets, and industries were mentioned. Finally, policy recommendations for the development of OFDI from the perspectives of government, enterprises, and industry were proposed.