Research On Country Risk Prevention Of Cluster Direct Investment By Zhejiang Private Enterprises In Africa

Reform and opening up has significantly increased China's economic aggregate and improved overall national strength,so domestic enterprises have become an inevitable trend of “going out”.In the past 40 years,China's foreign direct investment continues flowing into more countries and regions,and the global ranking of foreign direct investment flows and stocks is also increasing.China has become a major foreign direct investment country in global investment activities.As a major economic province in China,Zhejiang is in the forefront of the country in terms of both the number of overseas investment companies and the Chinese investment of overseas companies.Some private enterprises in Zhejiang Province,like those of other provinces and cities,have adopted a clustered "going out" approach to foreign direct investment.Zhejiang enterprises actively invest abroad in clusters,which will accelerate the development of overseas markets,realize the transformation and upgrading of enterprises,and contribute more to the economic development of Zhejiang.President Xi Jinping pointed out that Africa is a historical and natural extension of the joint construction of the “Belt and Road” and is an important participant.African countries are far away from China in geographical location,and there are large differences in cultural traditions,religious beliefs,ethnic composition,and socio-economic development levels.As a result,cluster investment by Zhejiang private enterprises in Africa will face more severe risks than in other regions,especially country risks.Under this background,the in-depth research on the identification,evaluation and prevention of cluster direct investment by Zhejiang private enterprises in Africa will help improve the level of direct investment in Africa,rapidly achieve the efficient and safe growth of enterprises,promote the high-quality and open economic development,and promote the implementation of the “Belt and Road” Initiative.Firstly,this article elaborates the relevant theory of cluster direct investment by Zhejiang private enterprises in Africa,and comments on the country risk literature of foreign direct investment.Secondly,based on the current situation of cluster investment by Zhejiang private enterprises in Africa,its country risks are identified.Thirdly,the identified country risks are used as a comprehensive evaluation index,and then the fuzzy comprehensive evaluation method is used to quantitatively evaluate the country risk of cluster direct investment by Zhejiang private enterprises in Africa.Finally,from the perspectives of the government,cluster and enterprise,the country risk prevention system is proposed for Zhejiang private enterprises to invest in a cluster in Africa.Through the research,this paper draws the following conclusions:(1)Cluster direct investment by Zhejiang private enterprises in Africa is a high level of investment in Africa,but like general companies investing in Africa,that inevitably face a variety of risks,especially African country risk including political,economic,and social risks.(2)Using the fuzzy comprehensive evaluation method,the measured country risk evaluation results of clustered direct investment by Zhejiang private enterprises in Africa show a higher value.(3)The country risk prevention of cluster direct investment by Zhejiang private enterprises in Africa is a complex system.It is necessary to start from the government,clusters and enterprises to build a three-tier country risk prevention system.(4)Cluster direct investment by Zhejiang private enterprises in Africa not only increases the ability to resist national risks,but also makes it more difficult to prevent national risks.We should establish a new concept of national risk prevention and control that "all eggs are put in a basket,and we must take good care of it",and adopt a variety of scientific measures to effectively prevent and control country risks of direct investment in Africa.