After The Crisis Facing China's Direct Investment In Africa Risk And Countermeasures Research

The global economy has been gradually recovering from the financial crisis. Inorder to enhance this recovery and sustain the development, many countries began toseek for new resources worldwide. Since many African countries are well-known asrich in resources, they have drawn the attention of these countries, including China.But there are conflicts in some regions which can cause investment risk in Africancountries. Moreover, with the slow recovering pace, the situation in Africa is evencomplex. Therefore, it is quite important for Chinese investors to makecomprehensive and in-depth judgment about the investment risk in Africa, to helpensure the safety and profitability of their investment. Also, appropriate measures tothe investment risk are needed. The prospective conclusions are presented as bellow:Firstly, Chinese investment in Africa has been developing since the reform andopening-up policy in1979. Although this trend continues in the post-crisis period,there’re problems exist.Secondly, the resource endowment, economic development, political situationand legal and cultural aspects have great influence to the Chinese investment in Africain both good and bad ways.Thirdly, there are two main investment risks which Chinese investors mayencounter, i.e. the political risk and the economic risk. The intense situation in andaround Africa may contribute to the volatility of political risk in African countries,and the European Sovereign Debt Crisis can help increase the economic risk.Lastly, the Chinese government and the investors should both do something tohelp lower the loss of the investment risk. What the Government should do includingbuilding legal system of FDI, having more cooperation with African countries,providing information and taking interventions to help the investors with investmentrisk. And the Chinese investors should make sufficient analysis about the risk,introduce better management to Africa and make appropriate self-protection whenthey encounter certain investment risk.