| Since the reform and opening-up, overseas investment of Chinese enterprises has been enjoying a great prosperity. However, the failure probability of Chinese overseas investment was the highest all over the world. Of all the investment risks political risk was difficult to control and always brought huge damage to investors. Therefore, it was important to analyze the situation of Chinese investment, find the reason of political risk and put forward countermeasures.This paper contained there parts and the body part followed the way of presenting a problem, analyzing it and solving it which was divided into four chapters as follow:Chapter 1 gave a summary of the status and risks of Chinese investment.Chapter 2 gave a summary of the main political risks that Chinese enterprises faced.Chapter 3 analyzed the reasons caused the political risks. It clarified why Chinese overseas investment was easy to suffer from political risks.Chapter 4 proposed solutions to deal with the political risk included prevention political risk, utilization of overseas investment insurance, perfection of the bilateral investment treaties and comprehensive utilization of mediation, litigation,arbitration and other ways.According to the analysis above, legal means was important to deal with political risk. But it was better to apply both legal means and other means. Enterprises should build up risk awareness, regulate their business activities and insure their overseas investment against political risk through domestic and overseas domestic institutions. After the occurrence of political risk, the enterprise should actively carry out mediation, negotiation and arbitration. And the government needs to complete Chinese overseas investment legal system, especially the construct overseas investment insurance system and also revise the Sino-foreign bilateral treaties to support our overseas investment. |
