Risk Analysis Of Chinese Enterprises’Foreign Direct Investment

Since the implementation of the strategy of China’s Reform and Opening-up to the outside world, the economy has been sustained the rapid development in the past thirty years. China has made outstanding achievements. Particularly China accessed to the World Trade Organization (WTO) before eleven years. The socialist market economy of Chinese characteristic integrates into the economic globalization of the world. China has repositioned in the global economy and trade pattern, realized the role from the global "Made in China" to " China Global Manufacturing" and changed the role from "Output Foods" to "Output Capital". Foreign direct investment plays a very important role in them. With the scale of Chinese enterprise about foreign direct investment, Chinese enterprise is faced with Investment Risk increased significantly. Therefore, a correct understanding of China’s Foreign Direct Investment Risk, effectively prevented the Investment Risk, is the decision-making core problem of our country enterprise about foreign direct investment.Based on the introduction of foreign direct investment and its risk on the basis of the theory, the paper elaborates the situation of our country enterprise about foreign direct investment and focuses on the analysis of foreign direct investment faced a variety of risks, and their sources. The text combines with the actual business according to extension theory, selects the index of the risk of enterprise about foreign direct investment, and tries to build the extension early warning model of foreign direct investment. It uses the relevant data to inspect the extension early warning model of the study. There can warn the possible risk of county. The paper puts forward the corresponding measures in order to guard against the risk of overseas investment. The writer expects to be able to provide the reference and support for investor decision-making.The innovation of this paper lies in the extension field correlation model, which is applied to the enterprise foreign direct investment risk early-warning model, enriched the risk early-warning method of analysis. There be highly operability and flexibility to the practical application. Because this is a bold attempt, there are inevitably some deficiencies, which need further research and improvement.