Legal Countermeasures Against The Country Risk Of Chinese M&A Abroad

Country risk is possibility because of the change of politics,, law or economic policy ,which cross-border investors will suffer frequently in the process of M&A in other countries. Country risk decide whether company can realize its investment objectives successfully. It also influences our national "invest abroad" strategic object. Its concept, legal characteristic and categories are basic issues, but there is lack of research in law field. There is not thorough studies ,but only simple introductions. The lack of research on the theory of Country risk results in more and more difficulties in practice. In order to deal with these problems ,we must generalize the concept of Country risk and its characters. This paper sets out view of cases analzing and uses comparing method to explain and research the concept , legal countermeasures against the country risk of Chinese over-see M&A from four following four parts.The first part deals with two M&A cases, namely the China Sea Petroleum Group and Haier Group's failure of M&A in America. This part mostly narrates three problems: Firstly the process of he China sea petroleum group and Haier Group's failure of M&A in America;secondly analyze two cases and lastly make a conclusion. Country risk will become intangible obstacles in the process of investing abroad increasingly.The second part deals with the country risk of Chinese M&A abroad. Firstly, we discuss the concept and legal characteristic of country risk, and then compare country risk and political risk. Secondly ,we discuss the primary kinds of country risk, namely sovereignty risk , political risk and law risk .At last, we compare the country risk in different countries, including the declare and check-up procedures for foreign capital M&A in host countries, the supervision in competition policy of host countries and national securities policy. This part is foundation of following parts. We answer that what country risk of Chinese M&A abroad is and why we should take effective measures to avoid and prevent the it.The third part deals with how to avoid and prevent the country risk . The effective measures include avoiding country risk before investment , establishing risk controlsystem ^ insuring at special insurance company > M&A in different counties and companies ^ setting up special risk funds for potential loss, taking lots of effective measures to transfer country risk, withdrawing when companies suffer country risk.The fourth part discusses law measures to void and prevent the country risk for our country and government, what our government should do for Chinese investors? It should enhance law-making on M&A abroad and provide consultation service > negotiate with other countries about the declare and checkup procedures for foreign capital M&A -. establish foreign investment insurance system > sign bilateral agreements with other countries to encourage and protect investment in the form of M&A.In the end of this paper , the country risk of Chinese M&A abroad is the predominant problem, and it will be the biggest obstacle for our investors. It is inevitable outcome of strengthen on national economic sovereignty in the background of globalized economy. Companies and our government must set up integrated mechanism. Only this can we cope with the country risk effectively.