China's Foreign Direct Investment Risk Study

The strategy of going global propels China's enterprises to invest overseas. But the complexity of international business environment determines that China's enterprises must face various risks and it's urgent to take measures to avoid and control the risks. The paper analyses the meaning and categories of foreign direct investment risks and the particularity of China's foreign direct investment risks based on the review of foreign direct investment scales and status quo of China's enterprises. Then it deeply studies the reasons leading to overseas direct investment risks of China's enterprises. Based on the risk management experience of developed countries' foreign direct investment, the paper puts forward the management tactics of China's overseas direct investment risks from both government and enterprises. Finally, the paper brings forward the elementary structure of establishing the risk guarding mechanism of enterprises' foreign direct investment.