Research On Risk Evaluation And Prevention Of China’s Direct Investment In The Belt And Road Countries

Since the "Belt and Road" initiative was launched,the investment cooperation between China and the countries along the "Belt and Road" has been deepened.However,most of the countries along the route are developing countries with complex national conditions and weak economic foundations,and some countries and regions are geographically far away from China,And long-term instability risks such as regional political conflicts and economic and trade disputes are also inevitable and difficult to predict.For the above reasons,Chinese enterprises face higher risks in the process of foreign direct investment.Therefore,the evaluation and prevention of risks are very important for enterprises’ foreign investment activities.Based on the research results of scholars,this paper comprehensively constructs the index system of China’s direct investment risk assessment for countries along the "Belt and Road" from the four levels of political risk,economic risk,market risk and social and cultural risk,combined with factor analysis and the entropy method to comprehensively evaluate the investment risk of 36 sample countries.Then,the cluster analysis method is used to divide the sample countries into 4 risk levels.Finally,this article establishes a comprehensive risk prevention system,and provides risk prevention strategies for China’s foreign-invested enterprises from the combination of risk assessment and risk assessment.The research in this paper shows that the investment risks in Singapore,Vietnam and the United Arab Emirates were the lowest in the sample countries,and the investment risks were the highest in Greece,Ukraine and Egypt.According to the analysis,in the future,when choosing the location of foreign direct investment,Chinese enterprises can give priority to Singapore,Vietnam,the UAE and other low-risk investment countries.When investing in high-risk countries,they should conduct a comprehensive risk assessment and take necessary measures to avoid risks.In addition,it is suggested that enterprises should give priority to the level of political and economic risk in host countries when investing abroad.