On Construction And Improvement Of China's Overseas Investment Insurance System

Along with implementation of China's "going out" strategy, more and more domestic enterprises invest abroad to seek even broader space for development. However, overseas investors are also facing huge investment risks in the pursuit of high profits, political risks are very difficult to avoid. In view of the possibility of political risks, the United States, Japan, Germany and other developed countries have established a sound overseas investment insurance system. At present, China's overseas investment legislation is lagging behind. Therefore, in order to protect the interests of foreign investors in China, China should establish its own overseas investment insurance system. There is still more controversy on how to build and improve our legal system for overseas investment insurance. This paper attempts to construct and improve our overseas investment insurance system, and made a number of my own views of how to push forward the development of China's overseas investment.This paper is divided into four parts:The first part is about the necessity of establishing China's overseas investment insurance system. After giving the definition of the overseas investment and analyzing the role of foreign investment further, overseas investment insurance system is analyzed, through defining the political risk insurance and the characteristics of the system, and then discussed the concept and the value of overseas investment insurance system through comparing with domestic general insurance. Overseas investment insurance system is a kind of indirect foreign investment and foreign investment in the protection of the national political risk absorption mechanism, which is the combination of public and private. The core concept is to protect overseas investment by indirect diplomatic protection. When someone is unable to award compensation, the political risks are absorbed by invoking national public power through a legal system of its own. The value system of overseas investment insurance system should follow three points: decentralizing political risks, indirect diplomatic protection and policy-oriented. Again, this paper expounded the status quo of China's overseas investment insurance system, including the status quo of China's overseas investment insurance legislation, insurance work and the existing framework features of China's overseas investment insurance system. Finally, the paper analyzed the need of building the system of China's overseas investment insurance. Now China's overseas investment insurance system is not sound, bilateral investment agreements and multilateral investment protection agreements are limited.In the second part, we can sum up overseas investment insurance system for the three models after introducing the overseas investment insurance system model of United States, Japan and Germany separately. Namely, bilateral model, unilateral mode and hybrid model. The models are divided by the factors, which are whether the home country and the capital-importing countries have signed bilateral investment agreements, and the agreements affirmed the status of domestic overseas investment insurance agencies directly and the subrogation right of claim, and the applying of such provisions are statutory prerequisite of overseas investment insurance system. There are two types of insurance agencies, the uniform system and the separation of two types, the uniform system and the isolation system. The United States and Japan are representative of the same system and Germany are representative of the isolation system.The third part discussed the construction of China's overseas investment insurance system in several fundamental factors. First, there are four legislative principle of China's overseas investment insurance system, favoring economic development, national guiding principles, and the principle of preventing economic issues developing into political issues. Second, the legislative model choice of China's overseas investment insurance system is discussed. The model of overseas investment insurance legislation plays a fundamental role in the insurance system, as it not only decides the scope of the host country for investment directly and the channels of realization of the right of subrogation, but also affects other insurance for the basic system requirements. Through the study of bilateral-mode, unilateral-mode and mixed-mode, bilateral model is more appropriate. Furthermore, the analysis of insurance agencies of China's overseas investment insurance system. Domestic scholars have divergent views for this issue. China's overseas investment insurance system should be emulated the German's pattern, and the overseas investment insurance agencies should be national franchise and operating by two agencies. Finally, the paper discussed on the subrogation right of claiming. Overseas investment insurance system have different legislative model, subrogation basis are different in the mode of unilateral and bilateral mode. The absence of bilateral investment agreements make the exercise of the right of subrogation relying on diplomatic protection, and in the bilateral mode, the exercise of the subrogation right of claiming based on bilateral treaties, so it is achieved better.Part four commits to improve our country's overseas investment insurance system. The proposed China's overseas investment insurance system and the credit guarantee system of SMEs should be integrated. Firstly, the paper discussed the necessity of the credit guarantee system of SMEs with overseas investment insurance system. Secondly, in order to promote the overseas investment of SMEs, the developed countries have established overseas investment insurance system. On the purpose of making it more perfect, a credit guarantee system has been established. The Japanese'insurance and assurance system is a good example. Finally, the paper gave the recommendations on the combination of China's overseas investment insurance and the credit guarantee system of SMEs. In order to make our country overseas investment insurance system to be further improved, we should establish coexisting operation system of credit guarantee system for SMEs and overseas investment insurance system. China's overseas investment insurance system will be more perfect.