Research On Risks And Preventions Of Chinese Enterprises’ Investing In Pakistan

In recent years,the growth of the world economy slows down,and the pattern of the world has changed.With economic globalization getting deeper and deeper,countries are not independent,but contact with each other and push each other.Many countries in order to seek self-development,at the same time they pay attention to strengthen international cooperation with other countries.Currently,our country is in the stage of the new economic norm,which emphasizes the sustainable development of the economic structure based on the symmetric state.But at present,Chinese enterprises are in the key period of enterprise reform,and their more prominent problem is overcapacity.The developed countries want to achieve the purpose of restricting China’s development by adjusting the development strategy.In view of the domestic and international background,China put forward the “The Belt and Road”initiative,and the purpose is to expand and strengthen the political,cultural and economic ties with the countries or regions,to seek common development and complementary advantages.Pakistan is the key point for Chinese looking westward strategy and its location is special to China.The Pakistan makes Chinese backward western area contact with Pakistan’s Gwadar Port,providing a channel for China into India ocean,the sea of Arabia and the surrounding areas.Pakistan will become the regional natural properties in South Asia,a Chinese business investment hub.Pakistan Economic Corridor is The Belt and Road initiative’s flagship project,and it can promote the economic development of China and Pakistan.Chinese enterprises investing in Pakistan can alleviate the current problem of industrial overcapacity and energy imports,but also can help Pakistan to improve its economy and building its infrastructure,to increase their employment etc..In recent years,China and Pakistan has been promoting the process of the construction of Pakistan Economic Corridor actively.For Chinese enterprises to invest,Pakistan has created a better investment environment.But Pakistan is also facing complex domestic and international situation.The prevalence of terrorism in Pakistan and differences between China and Pakistan make Chinese enterprises face many investment risks.This paper analyzes the macro environment situation and characteristics,risks and preventive measures of Chinese enterprises’ investing in Pakistan.Finally,I list the case of ZTE energyin Pakistan to learn their successful experience.This article mainly uses the environmental analysis method,the literature research method and the quantity research method.By analyzing the investment environment of Chinese enterprises in Pakistan,find the risk factors.I collected and summarized the existing literature about China enterprise investment in Pakistan.Based on the previous research results,I extracted the points contribute to this article in order to make the article more scientific,readable.In this paper,when studying the investment status and characteristics of Chinese enterprises in Pakistan,I relied on real data to analyze,so as to find out and summarize some rules of Chinese enterprises’ investment to Pakistan and find the trend of development more scientifically.This article has five parts totally,and the first part is the introduction.The second part is the analysis of macro environment of Chinese enterprises investing in Pakistan,from the “The Belt and Road”,Pakistan Economic Corridor and Pakistan domestic macro environment analysis in three aspects.Pakistan has a special position in the "The Belt and Road" layout,Pakistan Economic Corridor is an important project of “The Belt and Road",providing Chinese enterprises a lot of opportunities to invest in Pakistan.The third part mainly from four aspects of investment scale,regional distribution,industry and investment mode,analyzes the China enterprises at present in Pakistan’s investment situation and characteristics.The investment mode of Chinese enterprises is the growth mode,the region of investment is more concentrated,and the industry field is widely,investment mode is diverse on the whole.The fourth part mainly analyzes the challenges and risks of Chinese enterprises in the Pakistan investment from the view of politics,economy and culture.The political aspect,the Pakistan faction discourages investment process,and terrorist attacks threaten the safety of personnel and investment projects,and the non-traditional political risk will threaten the investment security.The US and India interfere in the construction of the economic corridor between China and Pakistan.In terms of economy,the risk of debt default,the risks brought by the tax policy and tax system,and the imperfect communication channels bring about the risk,and competitiveness that may lead to the increase of investment cost.The fifth part is mainly from the view of government and the enterprise to put forward the feasible risk coping strategies of Chinese enterprises.The two governments should further optimize the investment environment,for example,establish and perfect the relevant laws and regulations to control risks,set up information platform to provide more investment information,strengthen security cooperation;China enterprises should be familiar with the ability of Pakistan’s investment policy and related laws and regulations,carry out the localization strategy,improve the management of cross culture management and use of financial means to protect their own interests reasonably.Finally,by listing the case of ZTE energy,learn the successful experience of investing in Pakistan.