Principle of International Factor Cooperation and China's Direct Investment in SCO Countries

Abstract

International direct investment is the international cooperation of advantageous elements of various countries. In essence, it flows the advantageous elements of the home country to the host country through factor flow, and combines them with the advantageous elements of the host country to produce investment projects. In recent years, the trend of intra regional trade and investment integration of the Shanghai Cooperation Organization (hereinafter referred to as the SCO) has gradually strengthened. China's direct investment in SCO countries has increased geometrically, which essentially reflects the international factor cooperation under the condition of in-depth development of globalization. The results of mathematical models show that China's investment in SCO countries conforms to the principle of international factor cooperation.