Chinese Enterprises Outbound Investment, Legal Risk And Its Prevention

In "Eleventh Five-Year" period, China’s foreign investment and cooperation haveachieved new breakthroughs, the enterprises’ outbound investment speed up significantly,which expanding the space for China’s economic development and creating the conditions.The five-year cumulative foreign direct investment is$228.9billion with an averageannual growth of34.4%. Investment is distributed in178countries and regions around theworld. China’s total foreign investment in2012reached$65.2billion and the total amountof the investment located the first in the developing countries and the fifth in the world. Ithas been cumulatively constructed of16overseas economic and trade cooperation zone,which have become an important platform for enterprises’ outbound investment. The totalturnover of foreign trade projects amounted to$297billion, with an average annualgrowth of33.5%.Point of view from the trend of rapid development of China’s national economy andinternational economic trends, the implementation of outbound investment strategy hasreached to the critical period: First, with the accelerated of China’s industrialization andurbanization process,it is deepening that the dependence on overseas resources andinternational markets; Second, with the growth of China’s overall national strength andscale of business, some companies already have the technology and economic strength ofthe outbound investment; Third, with the improved degree of market liberalization andinvestment facilitation after WTO entry, it is matures the domestic enterprises investoverseas cooperation; Fourth, the financial crisis sweeping the globe have reduced the costand the threshold of the foreign investment in domestic enterprises and provide anexcellent opportunity for Chinese enterprises to multinational investment.This article is in this context, with the various types of cases in recent years of Chineseenterprises’ outbound investment, It is explored that issues of the legal risks of outbound investment of Chinese enterprises. Start from the case, it is unscrambled with the morevivid interpretation of domestic policies and foreign policies and regulations, andcombined with various different countries outside the M&A market environment. Thesystem should give guidance and develop directional strategies, base on this study failedcases and legal risks that may be encountered outbound investment to conduct acomprehensive analysis, and compare different corporate experience in outboundinvestment strategy to distill from them the inspiration and experience for Chineseenterprises to learn from and improve strategy results. It has a guiding role for Chinesecentral enterprises, state-owned enterprises and large private enterprises in overseasmergers and acquisitions to reduce investment costs, guard against the outside of thevarious types of risk and reduce losses there can not be ignored.