Foreign Direct Investment Strategies and Transnational Development in Zhejiang

In recent years, due to the rise of labour costs, RenMinBi appreciation and the state government that encourages private enterprise to make foreign investment, increasingly, private enterprise in Zhejiang start through foreign direct investment (FDI). Presently, major FDI modes of private enterprise from Zhejiang include: the establishment of overseas processing bases, international marketing network, overseas R and D institutions, overseas acquisition, and cluster foreign direct investment. By means of cost leadership strategy, differentiation strategy, and cluster FDI. strategy, such private enterprise may become engaged in local production network, innovation network, and social network, so as to realize sustainable development and enhance global competitiveness.