Study On Resource-based Enterprises Transnational M&A Legal Protection Of Political Risk

Since the policy of reform and opening-up was carried out, more and more Chinese enterprises have been investing abroad, especially after China’s "going out" strategy officially proposed in1990s, the number of overseas investment companies and rate of increase are growing markedly. With the increasing resources importing dependence, China’s resource-based enterprises became a new force in the M&A wave. However political risk is threatening Chinese overseas investment and the political risk is imposing more influence, not only because it is uncertainty and hard to evaluate, but also because political risk’s great influence and destructive power. With the development of M&A, our country’s overseas investment will step into a fast-going stage. We should pay more attention to political risk, so we can protect the country’s benefit and the overseas investment companies’ benefit.This paper introduces the concept of resource-based enterprises and transnational M&A, and explains the legal characteristics of transnational M&A, and analyses the expression forms of the political risk. Later this paper analyses the theoretical basis of resource-based enterprises transnational M&A political risk legal protection, through introduces the economic theory and the legal theory, this paper explains the necessity and rationality of the existence of this legal protection. In addition, this paper also introduced the other countries legal measures when political risks arises, including political risk warning system, overseas investment insurance system, as well as Bilateral Investment Treaty and MIGA; In the end, based on our current conditions, this paper proposes some suggestions to improve political risk warning system, overseas investment insurance system, as well as Bilateral Investment Treaty and MIGA.