Research On The Risk Of China's Foreign Direct Investment In Africa

In recent years,with China's economy continues to grow and its influence continues to expand,as well as the “Going Out” strategies and “The Belt and Road” Initiative have been put forward and implemented,the scope and scale of China's overseas direct investment have continued to grow.Meanwhile,we should also pay attention to the overseas investment failures or heavy losses,caused by the lack of understanding of the investment environment and investment risks of the target countries,which may have adverse impact on the further development.This article looks at the risks that China faces in its overseas direct investment and tries to explain it by choosing Africa,a relatively unique investment destination.This paper sorts out the process of Chinese investment in African countries,highlights the presented characteristics of investment in Africa in recent years,comprehensively analyzes China's investment in the region,and focuses on the major risk environments for this investment destination in Africa.After that,the specific risk indicators of 22 Africa countries were selected for empirical analysis to examine the how the major risk factors on direct investment impact the Chinese ODI to Africa.According to the final results,the overall concern of China's enterprises for Africa's risk is not high,and the focus of investment risk in Africa is different,so the impact is also different.Political and legal risks do not show strong correlations,but economic and social risks present a strong risk appetite.Finally,in conjunction with current hot topics,the author provide some relevant policy advices for China and Chinese companies,and help them to reduce or hedge investment risks and increase the success rate of foreign direct investment in Africa under new situation.