Research On Establishment Of China’s Overseas Investment Insurance System And Analysis Focusing On Subrogation Right

According to the Report to the Eighteenth National Congress of the CPC," toaccelerate the pace of Going Out and enhance the ability of international operations,foster a number of world-class multinational," strengthened the confidence of ourcommitment to opening up and "going out " strategy. With China’s accession to theWTO, China’s enterprises have formed an unprecedented "going out" situation.According to September9,2013the Ministry of Commerce, the State Administrationof Foreign Exchange and the National Bureau of three departments jointly issued the "2012Annual Statistical Bulletin of China’s foreign direct investment ", in2012China’s foreign direct investment flows reached a record high, reaching$87.8billion,an increase of17.6%, for the first time become one of the world’s three largestoutward investor. Many of China’s overseas investment toward Asia, Africa, andLatin, where the society is unstable, the majority of the legal system is not perfect,coupled with the lack of experience of overseas investment, the lack of legalawareness, resulting in heavy losses to the interests of the host country. WithChinese enterprises accelerating the pace of "going out", foreign investment growsrapidly, how to deal with overseas investment risks attendant to become the currentproblems to be solved. Compare to domestic investment, overseas investment face greater risks, in addition to general business risks also include the unique political risk.Foreign investment which invested in the host country affected by a variety factors,such as local politics, economic, law, cultural. It is difficult for investors to predictand grasp. Political risks often cause unpredictable, inevitable “fatal blow” to interestsof investors. At present, China’s overseas investment insurance system has not beenestablished. Therefore, in order to prevent and transfer political risks for foreigninvestors, the establishment of overseas investment insurance system that consistentwith China’s national conditions and meet international standards has importantpractical significance.The United States pioneered the overseas investment insurance system the late1940s, the other major capital-exporting countries follow to establish their overseasinvestment insurance system. Realization of subrogation right smoothly is the coreissue of overseas investment insurance. The paper will focus on the analysis ofenforcement of subrogation right and discusses legislation to build China’s overseasinvestment insurance system. It is divided into three parts. Analyze necessity to buildChina’s Overseas Investment Insurance System which is focus on analyzing selectionpattern of overseas investment insurance system and operation mechanism ofsubrogation right so as to further raise the specific legislative conception of theoverseas investment insurance system. Specific structure of this paper is as follows:The first part is to understand the general situation of investment insurance systemthrough basic concepts, the main features and practical significance and other aspects,and then to further analyze necessity to build China’s Overseas Investment InsuranceSystem from economical, practical and legal aspects and then to discuss the urgencyand importance to establish a special China’s overseas investment insurance system.The second part of this article is the most important chapter. First, to comparativeanalyze the pattern selection and the legislative practice of the major capital exportingcountries USA, Japan and Germany, the three countries’ overseas investmentinsurance system so as to provide a reference to the choice of overseas investmentinsurance system pattern. Second, to mainly analyze subrogation right of overseasinvestment insurance system by understanding its concept, legal relationship, exercise obstacles, exercise evidence and method of operation, building a comprehensivesubrogation right of overseas investment insurance mechanism. Finally, to discuss theassumption of selecting overseas investment insurance system pattern and subrogationright mechanism so as to determine the legislative guidelines, to discusses suitableChina’s bilateral investment insurance pattern and specific terms of subrogation. Thethird part introduces the legislative suggestion of specific content to China’s overseasinvestment insurance and subrogation system. Refer to a professional underwritingagency, China should choose an integration system of government company overseasinvestment insurance agency. This section raises initial specific assumption to thecoverage, underwriting conditions, the insurance period, insurance premiums andother aspects.