Country Risk Analysis For China Nuclear Power Company Oversea Investment

After nearly30years development, China has established whole nuclearpower industry chain and has developed its own generation III nuclear powertechnology. It is the core capacity of China nuclear power industry. With themotivation of China “going-out” strategy, China nuclear power company willmore involved in the international nuclear project competition with therespect of construction, equipment supply and technical services.Then country risk analysis should be significant consideration before wemake the investment decision. Refer to research result of country risk theoryand analysis method of international authorities, while fully adapted to thecharacteristic of nuclear power project; we established country risk analysisframework. The framework including three primary factors: political risk,economic risk and finance and other risk. For the political risk, it includesindex of economic freedom, conflict barometer and corruption perceptionindex. For the economic risk, it includes GNI, FDI potential index andinflation rate. For the finance and other risk, it includes government creditrating, carbon emission correlation and foreign exchange rate historicalvolatility. Weighting factor between each of these indicator are finalized byexpert survey and analytic hierarchy process. For the chosen of secondaryindex, we consider both authority and availability. With this framework, itmake company to perform country risk analysis be reality. Base on this framework, eight potential candidate countries wereanalysis. After evaluation of the result, we provided practical suggestion fordifferent countries; this could facilitate nuclear power Company to makeright oversea investment decision.