Based On The Theory Of Geopolitics Direct Investment Of Chinese Enterprises To Myanmar Political Risk Changes

As the military force has stepped down, Myanmar walks into a period of anelected government. However, the military government period left lots of negativeimpacts, like rigid system, backward country, social contradictions and so on. Thoseproblems make the whole society urgently need to be changed. At the present,Myanmar is undergoing a profound and complex revolution. Political forces inMyanmar have battled the power game with their own political purposes. Othercountries, on the other side, re-evaluate and adjust the policy toward Myanmar on thebasis of the current political process of Myanmar. The two aspects impact Myanmar’sgeopolitical environment, meanwhile, launch a far-reaching influence of political riskfor investments from Chinese companies.This article embarks from the geopolitical theory, applying the viewpoints ofpolitical and economic interaction, combining the change of Myanmar’s domesticpolitical reform and international environment, in order to analyze how these changesbring new challenges to Chinese companies which invest in Myanmar directly.In theend, sum up the political risk and the strategies, finally service to reduce the risk ofChinese enterprises to invest in Myanmar.Firstly, the thesis explains the meaning of Geopolitical.This field fulfills diversityand complexity, lots of Eastern and western scholars explain the concept ofGeopolitical based on their research. To sum up, Geopolitics can be defined as atheory that use "the geographical factors as an analysis of the basic elements ofnational strategy and international political".Secondly, the thesis also analyzes problems that the present situation of Chineseenterprises’ investments in Myanmar and the existing problems. At present, China hasbecome the largest investor in Myanmar; the international engineering contracting hasbecome a major form of Chinese investing in Myanmar. The investment industrylocates in the field of energy resources, which the local central enterprises andenterprises from Yunnan step in most. Problems for Chinese enterprises in direct investment mainly focus on lacking of overall planning, needing to improve theoperational mechanism to modern enterprise, the shortage of international talents withinternational vision. Companies shorting of foreign law and regulations knowledgedefinitely face those problems overseas.Thirdly, analyzing the subject that the change of political risk becomes the focus.On the basis of the Geopolitical theory, the author has analyzed the Myanmar’sgeopolitical environment. Combining with Myanmar’s environmental change, thispart compares different political risks between the military government and theelected government. Then the author selects the Punglung Hydropower station and theMyitson Hydropower station as the specific case to analyze different political risksunder different periods.Lat but not the least, this article does some researches on strategies against thepolitical risk of the Chinese enterprises’ direct investment in Myanmar. According tothe early parts of the thesis, the author has viewed Myanmar’s domestic politicalreform and the international environment changes. In order to reduce the risk thatChinese enterprises may face, the thesis concludes those political risks and strategiesfor the Chinese investment, points out the main economic cooperation andcommunication in the future.