A Legal Risk Study On China’s Enterprisesoverseas Direct Investment

With the rapid development of global economy, domestic enterprises have not been satisfied with the investment environment of their own country, so they turn their eyes to international market of more challenges and more potential. Overseas direct investment has become the main choice while China’s enterprises cast their international economic policies along with the economic tide. So domestic enterprises must take measures to prevent the legal risks that they may encounter during the period when international environment change constantly and conflicts of interest between countries also emerge in endlessly. In order to prevent the risks of international economic environment this article focuses on the viewpoints and theories of domestic and overseas scholars.The article is divided into three chapters adopting an approach of combining literature research and empirical research in the current situation of China’s enterprise overseas direct investment. Legal risks that are likely to suffer in the process of the investment is analyzed from the vertical and horizontal aspects. From the vertical aspect it set forth different risks existing in every part from the beginning to the end including market admittance, enterprise operation and exit. From the horizontal aspect it set forth the mode select of overseas direct investment and legal risks that may occur during the enterprise operation like labor, environment, intellectual property, etc. Then attention is turned to the current international and domestic legislation, and teases out its defects. This article puts emphasis on how to prevent the risks after producing the risks. This part begins with two points of domestic and international law. First of all straighten out the current domestic law, find out the defects and improve the current law so as to solve the protection of overseas direct investment. And then enumerate the related bilateral investment treaties, multilateral investment treaties and international legal norms under the framework of WTO for their main content and improvement in order to protect the overseas investment more effectively. Finally this article looks at our country’s economic interests and states that China’s enterprises should take advantage of current situation to develop the economy of our country. Also from the two aspects of international law and domestic law legislative suggestion is put forward in order to provide help to this aspect of academic research.Innovation of this article points the two: first, the research methods of this article is mainly comparative research and empirical analysis, literature research and other research common methods of writing and put the problem of foreign direct investment legal risks within the framework of international investment law, from the perspective of its home country to analyze how to avoid more risk; Secondly, this article takes more comparative research combining with the condition of foreign legal practice and China’s conditions to summarized a set of suitable legal system for China’s legal environment and legal risk aversion.The shortages of this article are because of these reasons mostly. Firstly, the view of the author’s knowledge is limited. Secondly, the author’s understanding of a lot of problems may be biased and degree is shallow. Due to the limited information, many problems still need to consult the relevant information to further implementation of verification. Finally, academic research can only according to the existing theory combined with the recent situation so there is a certain lag, there may be behind closed doors because the rapidly changing international economic environment.