Chinese Enterprises "going Out" Political Risk Research

Political risk study originated in the 60's of the 20th century. At that time, the Western multinational corporations faced the threat of political risk in the investment and business in developing countries such as nationalization, expropriation, revolution, war, and so on. Today, the political risk does not only belong to Western multinational corporations, and with Chinese enterprises'"going out", Chinese enterprises are also faced with the political risk in overseas investment, and the political risk exists not only in developed countries, also in developing countries. It is in this context, I chose to political risk facing with Chinese enterprises in the "going out" as a study subject.In this paper, by analyzing the CNOOC's purchase of Unocal case, I argued that"China Factor"makes Chinese companies than companies in other countries more vulnerable to the host countries'political risk. Additionally, the use of Constructivism explained why. Finally, according to the reality of Chinese enterprises, the author made a number of measures for Chinese enterprises to deal with political risk in the "going out".