Research On Investment Risk Of Chinese Company To Myanmar After The New Deal

Researchers all over the world have concerned the research field for risk assessment and avoidance for a long time.China and Myanmar are neighbors linked by mountains and rivers,and have close historical ties.Myanmar is rich of nature resource,which was an important collaborating country with China.Currently,there does exist abundant investment opportunities with large extending possibility in agricultural industry,tourist industry,power sector,manufacturing industry and extractive industry.Therefore,Myanmar is an important place for investment of Chinese corporations.In the current complicated and changing investment environment,Chinese enterprise was confronted with complicated investment risks,including political risk,economic risk,culture risk,management risk and so on.So,this paper research the current investment situation and investment environment of Myanmar and identify the investment risks.This study found that although China ranked the first in accumulative total investment,but the scale of investment decreased from $8.269 billon in 2010-2011 fiscal year to $0.4826 billion in 2016-2017 fiscal year.And Myanmar’s inflation is serious.In addition,there are many conflicts between the NLD and military government,which has brought a certain political risk for Chinese company.Through analyze the investment environment,this paper sums up 24 risk indicators,then handle them by PCA and AHP.This paper also invite expert to rate 24 risk indicators and obtain the risk assessment model.At last,this paper combined with a power station by a case analysis.Based on the above analysis,this paper put forward the following suggestions:1.Formulate reasonable strategic plan of investment in Myanmar.2.Investment projects and investment methods are diversification.3.Establish insurance system and guarantee agencies of foreign investment.4.Sign a new agreement on protection of investment between China and Myanmar.5.Strengthen publicity and reassure people.6.Beforehand prevention and cut loss in time.