Research On Causes Of Loss Of Chinese Enterprises Operating Overseas Contracting Projects And Legal Countermeasures

With the development of economic globalization, China began to carry out the "bringing in" and "going out" development strategy. The pace of the development become significantly quickly. As an important part of the overseas investment, The Chinese Enterprises Operating Overseas Contracting Projects also made the great achievements, especially in Africa and Latin America. On the other hand, with the fast development of the investment abroad, its’problem appeared in them should be paid more attention. These risks not only damage the economic interests of country, but also make the serious obstacles for the further development.Therefore, the essay as follows bases on the reason why the domestic enterprise’s investment loosed and legal measures how to take to avoid or remedy, takes Poland A2highway and Saudi light rail project Mecca as two typical cases, and uses comparative method, to give an further analysis. At last, the author puts forward some specific legal countermeasures so as to the healthy development of the overseas investment in China and the improvement of the legislation.Besides the preface and conclusion, the paper is divided into three parts.The first part mainly introduces the two typical cases. The China Railway construction of the Saudi Mecca light rail project, owing to the shortage of the budget and the lack of the local market, customs and religious taboos, this project encountered many difficulties, the enterprise loosed as high as4.153billion Yuan. Poland A2highway is the first project that Chinese enterprises entered the European market, Polish authorities canceled the contract immediately because the project in overseas had been abandoned, and compensated Chinese$270million, at the same time, Chinese Railway Ltd included its full-invested subsidiary company can not be participated in the project in Poland. These two big companies made efforts to complete successfully, however, one suspended on, and the other suffered huge losses. It highlighted the troubles or problems of the overseas investment of Chinese enterprise. These two cases are playing most important role in the analysis of the Chinese’s investment loss abroad.The second part mainly analyzes specific reason. Take the above cases, we can sum up as follows:Firstly, the lack of the host country investment environment; Secondly, the ignorance of the importance of the contract, unfamiliar with the general standard of international project contract; Thirdly, the lack of mechanism in estimating the risk and warning; The next reason is that the defective internal management mechanism is not close; At last, our approval, and the regulatory system to overseas investment in our country is not in place.The third part puts forward the specific legal countermeasures. The author holds that both of the enterprise and the government should take corresponding measures face of the loss. Speaking of the enterprise, it must pay much more attention to the host country before the investment; it also must be familiar with international standard contract and study the terms carefully to protect the legal rights of the enterprises; the internal management mechanism must be improved; learning to use positive settlement in deal with international dispute. For the government, it should improve the legislation on the investment overseas and strengthen the regulations or other aspects to gain and keep the interests of the enterprises’ overseas investment.