Research On China's Foreign Investment Insurance Legal System Under The Background Of The Belt And Road Initiative

As the Belt and Roas Initiative advances,Chinese enterprises are increasingly involved in overseas investment activities.However,fluctuations in global economy and politics have added erratic factors to politics and policies in some countries and regions,leading to growing risks in overseas investment and cooperation.Major risks faced by overseas investors include political risks,terrorism risks,legal risks,and social cultural risks.Because of the existence of these risks,Chinese enterprises involved in overseas investment are confronted by heavy losses that seriously hamper their management and development.Guided by the Belt and Road initiative,while encouraging overseas investment,China should take strict precautions against political risks in overseas investment to enhance the ability to cope with risks.As overseas investors are exposed to a variety of risks,precaution against political risks is of particular importance.Yet in China there is an institutional insufficiency concerning overseas investment,lacking a special law on overseas investment insurance.Relevant laws are dispersive and insurance organizations are largely identical,plus the high premium rates.Therefore,it is imperative that an overseas investment law or overseas investment insurance law be enacted and a sound insurance system be established to protect the legal interests of Chinese enterprises involved in overseas investment and to promote the healthy development of economic cooperation with foreign countries.Other countries have adopted different models of investment insurance systems.The Unites States has made it a legal prerequisite to sign an agreement on bilateral investment insurance with recipient counties,which applies to overseas investment insurance from the domestic law perspective.Hence the system of bilateral overseas insurance is generally referred to as the American model or Bilateral mode.Japan embraces the unilateral model,which means the policy holder can directly apply for insurance according to regulations of domestic law,without requiring to sign a bilateral investment insurance agreement with recipient countries.The German model is based on bilateral insurance,supplemented by unilateral insurance.The article also introduces the foreign investment insurance system of the Indian state.The comparative study on the investment insurance system in other countries will provide inspiration for the establishment of the overseas investment insurance system in China.China should establish an overseas investment insurance system suitable for both nationalconditions,China can learn from the bilateral foreign investment insurance legal system model and the actual situation of the investment activities of Chinese enterprises,with articles varying in different recipient countries.The insurance system should be able to differentiate between developing and developed countries,laying stress on both the signing of bilateral agreements with recipient countries and the procedural improvement of the insurance system to protect the interests of overseas investors both physically and procedurally.The system should moderately relax the eligibility requirements for policy-holders,expand the range of insurance,reduce premium rates,and encourage the participation of commercial organizations.By improving and enriching the overseas investment insurance system to make it more practicable,the interests of Chinese enterprises involved in overseas investment can be better safeguarded.Meanwhile,in overseas investment insurance,the subrogation and risk pre-warning system should also be established and improved so as to enhance the sustainability of the overseas investment of Chinese enterprises.