China's Pattern, Risk and Response to Direct Investment in the “Belt and Road”
07 Jan, 2020  |  Source:BRGG  |  Hits:2764

Abstract:Cross-border direct investment is the most critical area in China's economic and trade cooperation with the“Belt and Road” countries. Its key points include infrastructure construction, resource and energy cooperation, industrial park construction and export of superior capacity. In fact, with the implementation of the “Belt and Road” Initiative, China’s direct investment in relevant countries in the region is expanding. Especially, in recent years, China’s direct investment in the “Belt and Road” countries and large-scale investment in large projects with a single investment of over US$100 million have grown rapidly. At the same time, countries along the “Belt and Road” region are mostly developing emerging economies. Not only are the economic base weak, but the market stability is poor. Some countries are also facing geopolitical complexities, frequent changes in domestic regimes, and unstable security situations. And many risks such as low solvency. In-depth analysis of the pattern and characteristics of China's direct investment in the“Belt and Road”(including large-scale direct investment), assessing the various types of investment risks it faces, and propose relevant countermeasures to reduce the risk of China's direct investment in those countries within the region and improve the return on investment of Chinese companies and the further implementation of the “Belt and Road”are of great significance. To reduce the direct investment risk of China to the countries in the region, improve the return on investment of Chinese enterprises, and further promote the smooth implementation of the“Belt and Road”initiative, this paper is in-depth from the perspective of the scale, regional, country distribution and industry sectors of direct investment. Analyze the pattern and characteristics of China's direct investment inthe“Belt and Road”and quantitatively evaluate the investment risks existing in the host country, and then propose corresponding counter measures.