The Impact Of Country Risks On China's OFDI

In 2013,China put forward the "One Belt And One Road" initiative for the first time.The international community has paid great attention to this initiative,especially the countries along the belt and road.The cooperation with China in the fields of investment and trade has been deepening.However,while the scale and speed of China's OFDI have been greatly improved,Chinese enterprises are also facing greater investment risks.Most of the countries along the BRI are developing or transition economies with poor domestic political stability.Secondly,under the context of economic globalization and regional economic integration,international economic and financial fluctuations,the game between major powers and other factors have become obstacles for China's policy promotion and Chinese enterprises to go globally.There is no doubt that China will continue to promote the construction of "One Belt And One Road" for a long time in the future,which also means facing the risks brought by "One Belt And One Road" countries to the investment of Chinese enterprises.It is particularly important to do a good job in risk assessment and risk prevention.This paper will use the research methods of qualitative analysis,quantitative analysis and comparative analysis to conduct an in-depth study on the impact of risks of ‘One Belt And One Road' countries on China's OFDI.Firstly,the paper analyzes the status quo and characteristics of domestic enterprises' direct investment in ‘one belt and one road' countries,as well as the risks they face in OFDI.Secondly,the theoretical mechanism of the impact of national risk on China's OFDI is analyzed.In order to build more comprehensive national risk indicators,this paper intends to use factor analysis method to construct political risk indicators,economic and financial risk indicators of each country,so as to evaluate the national risk of ‘One Belt And One Road' countries.Then,based on China's OFDI data and the risk indicator system constructed,a multiple regression model is established to study the impact of country risks along the ‘One Belt And One Road' route on China's OFDI.On this basis,the sample countries were grouped for regression verification according to the abundance of natural resources and the level of national income.The results show that Chinese enterprises' OFDI has a certain preference for the political risk of the host country,and there may be a "resource-seeking" or "market seeking" motivation.However,economic and financial risks have a significant negative impact on China's OFDI.Finally,on the basis of the above comprehensive analysis,the corresponding policy suggestions for China's OFDI from the perspective of government and enterprises are put forward.