Legal Analysis On The Risk And Precaution Of Chinese Enterprises' Overseas Investment

Under the guidelines of the government "going-out" strategy and accession to the WTO opportunities, China has become one of the world’s major exporters of capital. But the foreign investment has suffered severe economic losses and damaged the economic interests of our country. This article summed up the investment risk types and causes, focusing on analysis of the political risks and came to a conclusion of prevention measures concerned the overseas investment political and legal risks.In the first part, this article introduces the basic situation of China’s overseas investment. It defined the concept of enterprise overseas investment in China and briefly summarized the history of China’s overseas investment activities. Combined with the current situation, it described the characteristics of China’s overseas investment.In the second part, this article analyzed several common risks of overseas investment. It divided the risk types into business risks and non-commercial risks and analyzed the causes and impact of non-commercial risks of the various types of political risk and legal risk.In the third part, this article focused on the national security review system which has a deeper impact on China’s overseas investment. Based on the China’s investment cases, this article focused on the U.S. national security review system and put forward corresponding strategies.In the fourth part, this article put forward measures to preventing risks of overseas investment. China should make full use of the BITs and the ICSID to protect the foreign investment, improve the domestic legislation and actively promote investment insurance system. Enterprises themselves should raise the awareness of risk prevention and prevent the investment risk by project risk assessment and investment insurance.