Chinese Petrochemical Enterprises Of Foreign Investment In The Political And Legal Risks And Their Prevention,

With the rapid development of domestic economy and constant increase inenergy demand, a few Chinese petroleum and petrochemical corporations haveattempted to conduct mergers and acquisitions (M&A) worldwide in the recent years,which is aimed to acquire more oil and natural gas resources. Some of the M&A caseswere successfully carried out while some resulted in failure. According to theprocesses, political and legal factors have had the greatest influence on the M&Arelated to Chinese corporations. At the beginning of the article the current situationand necessity of foreign direct investment by Chinese petroleum and petrochemicalcorporations are analyzed. Subsequently political and legal risks are discussed asemphases from different points of view by means of analytic demonstration. Duringthis course the related risks and the typical cases are systematically studied, then theprofound reasons leading to risks are summarized thoroughly in the article. On thebasis of such analysis, a set of feasible measures and policies are put forward forcorporations and governmental organizations to reduce the possible risks and losses inthe future.