CHALLENGES OF CHINA’S FOREIGN DIRECT INVESTMENT UNDER THE “BELT AND ROAD” INITIATIVE IN THE POST-PANDEMIC ERA
Authors:   West Ukrainian National University, Korniyenko Dmytro ,   West Ukrainian National University, Romanyuta Eduard ,   West Ukrainian National University
Published: October 2024

The evolution of China’s foreign direct investment (FDI) in countries along the “Belt and Road” represents a cornerstone of this ambitious initiative, with far-reaching implications for global economic dynamics. A comprehensive analysis of this phenomenon is indispensable, not only for fostering China’s economic expansion but also for elevating the “Belt and Road” initiative to unprecedented levels of success and influence. Our exhaustive research endeavor commences with a meticulous deconstruction of the multifaceted “Belt and Road” concept, delving deep into its historical roots, geopolitical significance, and economic ramifications. We then embark on a thorough exploration of the intricate challenges confronting China’s FDI across the diverse tapestry of participating nations and regions, encompassing political, economic, cultural, and environmental dimensions. This nuanced understanding serves as the foundation for developing tailored solutions and strategic recommendations designed to address these complex issues with precision and foresight. Our study aims to conduct an in-depth analysis and meticulous evaluation of the multifaceted risks associated with China’s FDI under the “Belt and Road” Initiative in the post-pandemic landscape, while concurrently formulating robust and effective countermeasures. We endeavor to shed light on the profound and transformative ways in which the global economic terrain, irrevocably reshaped by the COVID-19 pandemic, molds and influences China’s international investment strategies. This includes examining the pandemic’s impact on supply chains, market demands, and geopolitical relationships, all of which have significant bearing on FDI decisions and outcomes. Furthermore, we present a comprehensive array of meticulously crafted recommendations, not only to safeguard China’s economic interests but also to cultivate sustainable and mutually advantageous development in partner countries along the Belt and Road routes. These recommendations span various domains, including risk mitigation strategies, enhanced due diligence processes, and innovative financing models that align with post-pandemic realities. To execute this study with unparalleled rigor and precision, we employ a diverse and sophisticated array of cutting-edge research methodologies. Our analytical framework incorporates a meticulous examination of extensive statistical data pertaining to FDI distribution, enabling us to identify overarching trends, discern subtle patterns, and pinpoint specific effects with remarkable accuracy. This includes analyzing historical FDI flows, sector-specific investments, and regional variations to provide a comprehensive picture of China’s investment landscape. Furthermore, we leverage advanced econometric modeling techniques to conduct a granular and nuanced analysis of the impact exerted by a wide spectrum of risk factors on FDI performance. These models account for various economic indicators, political stability indices, and pandemic-related variables to provide a holistic view of the investment environment. This approach allows us to rigorously test and validate the efficacy of our proposed countermeasures, ensuring their practical applicability and potential for success. By adopting this multifaceted and interdisciplinary approach, we ensure a truly comprehensive and deeply nuanced understanding of the intricate and dynamic interplay of factors shaping China’s FDI landscape under the “Belt and Road” Initiative. Our methodology also incorporates qualitative analyses, including case studies of successful and challenging FDI projects, interviews with key stakeholders, and comparative analyses with other global investment initiatives, further enriching our insights and recommendations.