Author(s)

Chen Xue ¹

Affiliation(s)

¹ School of Economics, Shanghai University, Shanghai, 201800, China

Corresponding Author

ABSTRACT

The year 2020 will mark the 20th anniversary of the founding of the Forum on China-Africa Cooperation (FOCAC). Since the 21st century, with the "the Belt and Road" "going out" strategy deepening, China-Africa economic and trade cooperation has become more and more frequent, the total amount of investment has been increasing, and the investment field has been greatly broadened. With rich natural mineral resources and sustained economic development, Africa has attracted even more foreign investment. However, due to many problems in Africa, such as colonial historical legacy, imperfect laws and regulations, and low infrastructure construction, China's direct investment in Africa has a high degree of uncertainty. In this paper, we firstly check the data of China's outward direct investment statistical bulletin to analyze the current situation of enterprises' investment in Africa. Secondly, we give a brief overview of the concept, classification and rating standard of country risk. Then this paper analyzes in detail the types of risk faced by the investment in Africa, and finally put forward the suggestions and measures on how to recognize and effectively prevent these risks.

KEYWORDS

CITE THIS PAPER

Chen Xue, Country Risk Study on Chinese FDI in African Countries. Financial Engineering and Risk Management (2023) Vol. 6: 111-117. DOI: http://dx.doi.org/10.23977/ferm.2023.061015.

REFERENCES

[1] Zhao Ancun. Political Risks of Chinese Enterprises Investing in Africa. French Studies, 2020(01):43-49.
[2] Liu Huihao. How to Prevent Risks of Enterprises' Investment in African Countries under the "Belt and Road" Initiative. International Financing, 2020(06):16-17.
[3] Zeng Jie, Song Binling. Preventive Mechanism of Chinese Investment Expropriation Risks in Africa. Journal of Xiangtan University (Philosophy and Social Science Edition), 2022, 46(03):57-61.
[4] Yu Wenhua. Country Risks of Private Enterprises' Outward Foreign Direct Investment and Their Countermeasures. SAR Economy, 2008(08):138-139.
[5] Liu Kangning. Research on Country Risks in China's Direct Investment in African Countries. Capital University of Economics and Business, 2020.
[6] Zhang Ailing. Political Risk and Prevention of Chinese Enterprises' OFDI to Africa. International Economic Cooperation, 2016(09):47-52.
[7] Gao Lianhe. Dilemma Response and Risk Prevention of China's Overseas Economic and Trade Cooperation Zone Upgrading in Africa. International Trade, 2021(03):11-18+43.
[8] Zhang Di, Wang Libin. Research on the Legal Problems of China's Enterprises' Investment in Africa. Foreign Economic and Trade Practice, 2022(04):79-82.
[9] Li Na. "Research on Country Risks of Xinjiang Enterprises' Outbound Investment in the Context of "Belt and Road". Economic Forum, 2018(06):107-110.  
[10] He Qizhi, Xia Pingfan, Li Bo, Liu Jiabao. Evaluating Investors Recognition Abilities for Risk and Profit in Online Loan Markets Using Nonlinear Models and Financial Big Data. Journal of Function Spaces, vol. 2021, Article ID 5178970, 15 pages, 2021.
[11] Li, X. T., Wang, J, & Yang, C. Y. Risk prediction in financial management of listed companies based on optimized BP neural network under digital economy. Journal of Manufacturing Processes. 2022. (https://link.springer.com/article/10.1007/s00521-022-07377-0)

Sponsors, Associates, and Links

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics