Abstract

This paper is based on the modified eclectic theory of international production. According to the quarterly data after the US subprime crisis, this paper analyzes the factors that influence the direct investment from China to the United States using regression analysis. The result is as follows: China’s and US’s economic growth, development of the US science and technology, increase of energy production and aggravation of Sino-US trade friction have a positive effect on promoting China’s massive direct investment to the United States while the exchange rate of USD against RMB has an opposite effect. According to the result, this article proposes some policy recommendations for the current situation of Chinese direct investment in the United States.

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