Research On The Political Risks Of Chinese Companies Investing In India

China and India are two most populous developing countries and emerging economies in the world and there is a close economic and trade cooperative relation between both countries.With the advance of “the Belt and Road” Initiative,China's investment in India will also increase,but judging from China's current investment in India,the situation is not optimistic.Firstly,the volume of trade between China and India is very large,showing a gradual upward trend,but the volume of China's direct investment in India is very small,which doesn't match the present situation of economic and trade development in both countries.Secondly,trade frictions occur frequently between China and India,and India is the country that raises the most anti-dumping investigations of China.Additionally,seen from the recent failure of Sino-Japan's bid for the Indian high-speed rail project,India has a lot of concerns about China,especially distrust in politics of China.A research on the political risks of investment from Chinese enterprises in India can timely provide references and suggestions for the country and enterprises to make decisions on outbound investment,which is conducive to the rapid and healthy development of China's outbound investment,the smooth implementation of “the Belt and Road” in South Asia,and the further development of Sino-Indian diplomatic relations.This paper mainly consists of four parts.The first part analyzes the reasons,present situation and characteristics of investment from Chinese enterprises in India,and combined with the Country-Risk Rating of Overseas Investment from China 2016 released by the Chinese Academy of Social Sciences and the China Overseas Investment Index Report 2015 released by the Economist Intelligence Unit,analyzes and evaluates India's political risk coefficient and finds that India is a country with high risks and high opportunities.The second part analyzes the political risks of investment from Chinese enterprises in India from both macro and micro perspectives.From the macro perspective,a research is conducted from the aspects of host country and international environment,while from the micro perspective based on enterprises,a cause analysis is made from the enterprise itself.According to the research findings,there is serious corruption,a high risk of war and civil strife,and low government efficiency in India,and “Safety Review” and “China Threat Theory” are both political risk factors that cannot be ignored in terms of investment in India.The third part is an in-depth case study of the risk factors based on the failure of Enron's Dabhol Power Company Project,the blocked investment from Huawei in India,and Japan's successful bid for the Indian high-speed rail project.The fourth part analyzes the establishment of “3D” countermeasures for various political risks of investment from Chinese enterprises in India through units such as international organization,country and enterprise in order to build effective relevant international mechanisms,diplomatic channels,and corporate investment norms and make “3D” policy systematic.