Legal Protection On The Overseas Investment Of Chinese Enterprises Under The "Walking Out" Strategy

With the advent of new times, Chinese enterprises have set off a upsurge of overseasdirect investments under the support of a big amount of foreign exchange reserves. Especiallyunder the guidance of “walking out”strategy, our domestic overseas investment has developedextremely rapidly. However, risks have overwhelmed as well with the rapid increase ofoverseas investment, are investing risk, commercial risk, natural risk as well as political riskare all in front of us. In recent years, turbulent international social situations as well asterrorist attacks are often seen, and political risk appears to be rather outstanding in this period.The constant occurrence of incidents that our domestic overseas investment suffered hugeamounts of losses in front of political risks when investing in host countries has causedChinese enterprises to drop into the predicament that has never met before. The lack ofpractical experience and the deficiencies of related legal system has also posed investingenterprises in front of enormous challenges. The full and effective legal protection hasbecome the important guarantee for Chinese capitals to enter global production, operation,circulation and other fields.This paper takes the big background of “walking out”strategy as the basis, starts from therapid development of overseas investment of Chinese enterprises and its continuouslyencountered political risks, focuses on the deficiencies of our domestic political riskprevention and protection, takes foreign law-making and practical experience for reference,discusses how to establish and improve the law-making of our domestic investment protection,how to utilize the contents of multilateral investment contract and bilateral investment treatyto protect our domestic overseas investment necessarily and how enterprises should fullyutilize the assistance of government and industrial associations to prevent the risks effectivelyso as to guide and protect Chinese foreign invested enterprises to“walk out smoothly”.In this article, the first part mainly introduces the development of overseas investment ofChina and the current overseas investment under the “walking out”strategy. The second partelaborates the protection of international society on overseas investment and takes the legalinstitutions in Japan, US, German and other countries. The third part dissects the deficienciesof the existing system of our domestic overseas investment protection. The forth part putsforward the conception of improving the legal institution our domestic overseas investment specially for the current existing problems. With the discourse of this paper, it wishes to assistour domestic enterprises to select more reasonable investing methods while conductingoverseas investments and avoid the risk in a better so as to acquire the greater benefits.