| Since the “The Belt and Road Initiative” was proposed by Xi Jinping,the president of PRC,in 2013,it has been continuously deepened and comprehensively promoted from national initiative to international resolutions and from regional to global.With the propaganda and guidance of the country's vigorous policies,China's overseas direct investment has made considerable progress.Particularly,the direct investment flows,regions,and industries of countries of “The Belt and Road” are constantly increasing and expanding.By 2017,Chinese companies have made direct investments in 53 countries under “The Belt and Road”,and the investment volume has increased by 3.5% year-on-year.However,except for a few countries,most of 65 countries along the “The Belt and Road” are developing countries,and there are widespread problems such as political instability,prominent religious and ethnic issues,low level of marketization,and unsound legal environment.All those problems contain huge investment risks,especially political risks.On January 27,2015,the Greek government announced the suspension of the Piraeus port project invested by China COSCO Group on the same day which the leader of this country changed.The <Blueprint for the Report on the Internationalization of Chinese Enterprises(2014)> stated that political risk hasbecome a major risk for Chinese companies' internationalization in October 2014.Political risks occur frequently and there is a great deal of uncertainty.However,China's current overseas investment insurance system has not yet been formed,and it cannot provide a powerful protect for Chinese companies to develop under the “The Belt and Road”.If it still has no improvement,in the long run,it will surely affect the implementation of China's “The Belt and Road”.Therefore,it has become a urgent problem that how to effectively control the political risks encountered alongside these areas and meet the needs of China's overseas direct investment to.The overseas investment insurance system is the core.Perfecting the overseas investment insurance legal system is a necessary guarantee for the construction of the“The Belt and Road”.China's overseas investment insurance lags behind in domestic legislation.At present,there is no law that specifically regulates overseas investment insurance in China.Only the “Circular on Establishing Risk-safeguarding Mechanisms for Key Overseas Investment Projects” issued jointly by the National Development and Reform Commission and China trust Insurance is just the basis for confirming the establishment of CITIC Insurance's overseas investment insurance business,and it is not an institutional norm.Other issues,such as unclear basis for supervision and regulations,are unreasonable.There are also deficiencies in the protection of bilateral investment,which is inconsistent with the fact that the BITs of countries along the “The Belt and the Road”,either did not sign or the signing time was too early.The political risks of underwriting seem to have a comprehensive look at specific individual contracts for overseas investment insurance.There are shortcomings,and some do not include profile collection.Qualified insurance coverage does not support individual insurance,but also protects foreign capital,which is not reasonable.There is also a weak awareness of overseas investment entities.In addition,at the national level,although the China Insurance Regulatory Commission has proposed to encourage insurance companies to underwrite China's overseas investment,the current business development is still relatively elementary.Therefore,strengthening the legislation of China's overseas investment insurancesystem is a problem that needs to be solved urgently.In addition,updating BIT's contractual clauses and improving the conditions for underwriting are all Chinese enterprises going out better and more securely under the “The Belt and Road”. |
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