Study On The Risk Of Chinese Enterprises' Investment In African Petroleum Industry

After twenty- first Century, China economic development is very rapid, as the largest developing economies, demand for oil C hina domestic demand than C hina fast growth, domestic oil supply to catch the oil demand growth rate. In this context, Chinese enterp rises going out, to Africa invest oil. This paper use literature research method and compare research method, on the risk investment enterprises to produce Chinese Africa petroleum industry and its process. This risk mainly includes the risk of three aspects, the political risk, financial, regulatory. Political risk is due to host political environment and the ruling party alternation of various political environment and policy caused the loss of the enterprise. Financial risk is due to business activities of the enterprise environment, such as the interest rate market, the securities market and investment strategies of enterprises brought about by the company’s assets depreciation and appreciation of risk. Regulatory risk is the risk of changes in the host country legal supervision and internal supervision of enterprises caused by. This paper enumerates the petroleum cooperation project between C hina and the Soviet Union case, based on case analysis, summed up the reasons C hina enterprise investment risk on the non oil is produced. The reason is mainly caused by the investment of political, financial and regulatory environment is not perfect, is not stable, not standard. The last part of the paper puts forward the political risk, legal risk C hina enterprises face, suggestions and regulatory risks. China government with Africa government signed a multilateral agreement and maintain friendly diplomatic strategy to avoid the political risk. At the same time, C hinese enterprises rely on domestic financing mechanis m to ensure enough more perfect enterprise funds chain, and cultivating international talents to avoid the financial risk caused by financial risks. The relevant departments Chinese enterprises with the local China embassy communicate, through its channels to fully understand the legal supervision to avoid regulatory risk Africa loss caused by. It can improve C hina enterprises in Africa investment rate of return.