Legal Risk Prevention And Control Of Chinese Enterprises' Investment In Liberia

In recent years,as the "The Belt And Road" initiative has advanced,Chinese companies have tended to choose high-risk markets.Liberia is one of the target countries.Liberia belongs to Anglo-American law system,which basically copied the American law in the early stage.It is quite different from our legal system.As most Chinese companies investing in Liberia are not familiar with the country's legal environment and the complex legal risks,their investments in Liberia often lose everything.How to prevent the potential legal risks of investing in Liberia effectively is a difficult task for every Chinese enterprise.Whether Chinese enterprises can deal with and prevent the legal risks of investment effectively in Liberia will ultimately determine the success or failure of investment in Liberia.This paper is divided into four parts except the introduction and abstract.The first part is the legal risks arising from the political environment of Liberia as well as the prevention and control suggestions.The political environment in Liberia is complex and there is still a risk of war and civil strife.As government guarantees and commitments increase,the cost of fulfilling them will also increase.In particular,some large investment projects are highly politically sensitive,so it is difficult to assess the credit risk of the government.Political risk management should be timely and forward-looking at the same time.By making predictions of political risk to establish a risk transfer mechanism,legal risks caused by political influence can be reduced to a great extent.Chinese enterprises may,according to their needs,choose suitable insurance types to be insured by the appropriate domestic and foreign insurance institutions,so as to transfer political risks effectively.The second part is the legal risks of legislation and judicature in Liberia as well as prevention and control suggestions.Liberian trade-related laws and regulations are not very complete,and they are often managed by internal interim regulations,which are easy to be adjusted frequently with the new government coming into power.The judicial system of Liberia is relatively fragile,which is mainly reflected in the lack of judicial capacity and low credibility.The ability of judicial departments to solve trade disputes is poor,as the cases are delayed,and the judgment result is subject to external factors.Under the premise of guaranteeing Chinese enterprises' own legal compliance,Chinese enterprises can add stability clauses or sign franchise agreements in investment agreements to deal with frequent policy adjustments.At the same time,in order to attract foreign investment,Liberia has been committed to building a modern arbitration legal environment,which can make good use of international arbitration to protect its legitimate rights and interests.The third part involves legal risks of labor protection as well as prevention and control suggestions.In the process of Chinese enterprises investing in Liberia,the legal risks caused by labor protection are very high and the consequences are extremely serious.The Liberian government is increasingly emphasizing the localization of employment,making it difficult for Chinese companies not only to bring in foreign workers,but also to deal with powerful labor unions.The problem of labor protection is often ignored by Chinese enterprises,and the failure to deal with it in time leads to strikes and conflicts of nationalism.On the one hand,Chinese enterprises should adopt strategies suitable for the local social and legal environment,meet the localization strategy advocated by the Liberian government,strengthen labor training,and improve their ability to deal with the risks of labor employment policies.At the same time,we should closely follow the "The Belt And Road" initiative of our country to deepen the understanding and recognition of Chinese enterprises in Liberia.On the other hand,through the recruitment of professional international management and legal talents,Chinese enterprises can avoid labor disputes caused by improper management and maintain a harmonious relationship with the trade union.Also,the dispute can be timely and properly handled.The fourth part is the environmental protection risk as well as prevention and control suggestions.Liberian environmental protection law imposes heavy penalties and strict government supervision,while Chinese enterprises are generally not familiar with the relevant laws and regulations of environmental protection in Liberia.Repeatedly,enterprises that fail to meet the standards are ordered to stop their operations,which requires them to pay a large administrative fine,and those who cause serious consequences will be investigated for criminal responsibility.On the one hand,strictly abiding by the laws of Liberia and actively assuming responsibility for environmental protection are not only the basic obligations of Chinese enterprises investing in Liberia,but also the best way to prevent legal risks and avoid heavy penalties.On the other hand,enterprises can establish an internal environmental assessment mechanism adapted to Liberian law to effectively prevent and control the risks hidden by the absence of legal awareness of environmental protection.