A Study On Risks And Countermeasure Of Chinese Power Enterprises' Outward Foreign Direct Investment

In recent years,Chinese enterprises have made great progress in their outward foreign direct investment activities.China has changed from a capital-poor country that attracts foreign investment to a capital-exporting country with many companies capable and willing to invest overseas.After the “Belt and Road Initiative”,foreign investment activities are even more in full swing.However,we often find that Chinese companies often encounter many setbacks in their overseas investment process.Therefore,it is of practical significance to conduct research and analysis on outward foreign direct investment in order to prevent further lost.This paper first summarizes the relevant definitions of outward foreign direct investment,and mainly uses the definition of government departments of China as the basis for discussion.Then,it summarizes the current situation of outward foreign direct investment of Chinese enterprises,especially power industry enterprises.Generally speaking,China's foreign direct investment is in a period of great development,and power industry enterprises are also an important force.Then it introduces three cases in Europe,Southeast Asia and South Asia,which have been exposed to risks in their investment process,thus clearly stating that it is common for power companies to suffer from overseas investment risks.On this basis,based on the practical experience,the Turkish H project invested by D company in the Turkish is chosen as a case.Through the discussion and analysis of the expert group,the operational objectives and competitive environment of the project were evaluated,and five main risks were picked out,including: political risks,the competition with new energy,coal price fluctuations,exchange rate and liquidity risks,and environmental protection risks.The targeted measures at the project level against the five key risks are given,and further proposals are made to give D company some suggestion on how to build a long-term effective risk prevention system at the enterprise level.Finally,give a summarize to the paper.All in all,this paper hopes to explore the methods that can be used for risk analysis in the overseas investment decision-making process of Chinese power companies through the analysis and research of single cases,together with proposes on the solutions for decision-making and operation.