Research On The Legal Measures For Preventing The Political Risks From Overseas Investment

Foreign investment brings great profits along with its great risks. Investors will suffer with political risks when going for profits. Political risks usually bring hedge loss to investors which cannot be offset, In order to protecting FDI from political risks, many countries established some regimes for investment protection:Investment Insurance Scheme, BITs, MIGA. Investment Insurance Scheme made by the government of capital export country to promoting FDI, which is a state guarantee in fact. BITs are a medium to make the investment insurance works. Only by cooperating with BITs can the investment insurance work. MIGA is the biggest multilateral investment insurance agency in worldwide, which makes up for the defect of domestic investment insurance and BITs. Although they have many advantages and disadvantages, they are complementary in promoting FDI. Compared with developed countries, the investment protection system in China has many defects. The government and investors should correct mistakes and optimize Chinese legal mechanism in preventing political risks.