Research On The Political Risk Control Of Chinese Enterprises Foreign Direct Investment

As the put in force of the strategy of "going out", especially the" One Belt and One Road", Chinese enterprises develop rapidly in foreign direct investment. But what should not be ignored is that Chinese enterprises meet many risks and encounter many setbacks in foreign direct investment as the overseas market is complicated. Among them, the political risk is the most common, having a great influence and the representation of which is varied, bringing enormous losses to Chinese enterprises. Thus, how to control and minimize the political risk has become a top priority for Chinese enterprises.On basis of studying the development process, present status and main political risk of China foreign direct investment, This paper deeply studies the main factors of the political risk through the comparison of two cases and proposes control strategies in order to ensure the benefit of Chinese enterprises and enhance their anti-risk capability in foreign direct investment. The article is divided into five parts:the first part is the introduction, and some theories are studied in the second part, especially the theories of political risk in foreign direct investment, while the third part studies the development process and present status of China foreign direct investment, besides, the forth part studies the formation reasons of political risk and the main political risk Chinese enterprises facing and the fifth part analysis and sum up the reasons of success and failure through comparing "China Railway Construction on Corporation Limited bid for Mexico’s high-speed rail project "and "ZIJIN Mining Group Company Limited mergers and acquisitions copper of Kolwezi in Congo (gold) project". Finally, the sixth part puts forward some strategies for Chinese enterprises to deal with political risks.