The Studies Of Political Risk Of FDI From China To Africa

With the development of China's economy and the rapid growth of foreign exchange reserve,under the direction of "Go out" strategy,many Chinese enterprises are beginning to invest abroad.There are good cooperation in the fields of politics and economies between China and Africa,because china's economy and African economy are complementary,and they have a high potential in cooperation.Africa has become one of the most important regions of Foreign Direct Investment(FDI)from China.However,the FDI inflow into Africa from China only has a small scale and also flows into several fields.Chinese investment in Africa is increasing,but still represents a small fraction of FDI stock.So it is just the beginning of FDI from China inflow into Africa.Generally speaking,Africa is a region with high risk,thus it attracts little FDI for a long time.Political risk has become bottleneck factor of FDI inflows into Africa from China.Under such circumstances,on the ground of situations of FDI inflows into Africa from China,this thesis researches the political risk management of Chinese enterprises,which is investing or will invest into Africa.The thesis has total of 40,000 words and is divided into six chapters,just as the follows:Chapter 1 is the introduction to the thesis,which gives the background of trade between China and Africa and FDI inflows into Africa,and introduces the topics of political risk management.Chapter 2 is literature review.First,the study focuses on the contentions and theoretical tendency around the concept and the factors of political risk.Secondly,the paper compares the two analysis and assessment methodologies of political risk, namely the macro methods and micro methods.In this chapter,the definition of political risk is proposed.Chapter 3 shows the situations of FDI inflows into Africa from China from Africa aspect and China aspect.From Africa aspect,the paper discovers the characteristic, incentives and challenges.From China aspect,the paper analyses the incentives and shows the situations and perspectives of China's FDI outflows to Africa.And the chapter pays attention to view 'Political risk has become the bottleneck of China's FDI outflows to Africa'.Chapter 4 analyses the detailed factors of political risk.Firstly,the paper discusses the constraints on FDI to Africa:result from four surveys.Secondly,the section refines the specific factors of political risk for Chinese enterprises during investing directly into Africa.Chapter 5 researches the political risk management.The paper creates the political risk management procedure-APDCF circle for Chinese enterprises to control political risk.And the chapter also proposes taking withdrawing,insuring,applying to domestic government for helping,communicating with host government, diversification strategy,localization strategy and so on.Chapter 6 is case study.The paper analyses the case of Huawei Technologies Co., Ltd.Through case analysis,the opinions and views are proven to be right.