On The Improvement Of Overseas Investment Insurance System

China started to get involved in the international markets to invest abroad in1979. In the last century, the economic development of China is still relativelybackward which requires a lot of money to support the recovery and development ofmarket economy.Therefore, China has been focused on the policy of "bringing in".Inorder to attract the foreign capital,the government gave favorable treatment to theforeign capital with a number of policies and regulations. In2001, China joined theWTO, marking our domestic market is officially completely open to the internationalcommunity, which leads to more frequent international trade. While foreigninvestments were flocking in large numbers, a large number of domestic enterprisesof great strength and great developmental vision have entered the international marketto look for more business opportunities. When the Party and the government wereaware of the importance of the international market for China’s economicdevelopment,they gradually raised the strategy of"going out", encouraging enterprisesto invest overseas. Instead of affecting our overseas investments, the financial crisisin2008accelerated the development of overseas investments when the internationaleconomy was in recession. Compared to the previous years,the annual investmentdoubled at least,ranking the first ranks in the world.The success of overseas investment also caused severe losses of investorsbecause of all kinds of political risks in the international investment environment. In2004,the Spanish mob set fire to the local Chinese businessman shops andwarehouses on the grounds of their unemployment and the protection of the localfootwear industry,which directly resulted in an economic losses of8millionyuan.And the civil unrest in Libya at the beginning of2011almost brought the localprojects invested by Chinese to a standstill and caused the loss of nearly20billionyuan. Suffered such a great loss, the investors only can get minimal damages. Forexample,the investors got less than400,000,000yuan which occupies less than2 percent of the total loss caused by the civil unrest in Libya. The reason for such atragedy partly for investors, lacking in the consciousness of preventing risk, wereunwilling to spend too much money on the insurance; partly because there is not aperfect overseas investment system in China, nor sound overseas investmentinsurance system to protect Chinese overseas investment. Based on the presentsituation of the overseas investment insurance of China,this paper not only willanalyze the shortcoming of the overseas investment insurance of China fromlegislation and practice, but will propose concrete suggestions to promote the systemof overseas investment insurance system of China by learning the experience oflegislation and practice from the capitalist countries.