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Country Risk Study on Chinese FDI in African Countries

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DOI: 10.23977/ferm.2023.061015 | Downloads: 25 | Views: 375

Author(s)

Chen Xue 1

Affiliation(s)

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

Corresponding Author

Chen Xue

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

Trade with Africa, OFDI, Country Risk

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.

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