The Realization of a Strong Trade Power and China’s Direct Investment in SCO Countries


Factor flow
Strong trade power
Shanghai Cooperation Organization
Investment risk




China’s path to becoming a strong trade power can be divided into three levels: the micro level of promoting factor cultivation, the meso level of achieving industrial dominance, and the macro level of participating in the establishment of the world system. As a feature of globalization, factor flow is the foundation and key to achieve the above three-level goals. In the first stage of reform and opening-up, China complied with the globalization characteristics of factor flow and gathered a large number of capital factors. It is now the second stage of reform and opening-up; that is, the stage of export-oriented investment. International investment may help in the path to become a strong trade power, or it may become an obstacle. The maximization of benefits and evasion of disadvantages are influenced by the grasp of investment risks. Therefore, special attention should be paid to identifying potential risks and controlling risks.


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