Research On The Legal Risk Of Host Country In The Location Selection Of Overseas Agricultural Investment

The rise and fall of agriculture not only involves economic and trade issues,but also relates to food security and national strategic material security.The party and the government support conditional agricultural enterprises to develop overseas business,with the vigorous development of China’s economy,agricultural growth is obvious.But relative to other industry,agricultural investment market share,domestic legislation,insurance mechanism is not perfect,the legal consciousness of investment main body is weak,risk prevention and response capacity is lack,combined with the differences legal,institutional and cultural in different countries,and the policy of host country legal obstacles,China’s overseas farm management has very big development space as well as associated with certain legal risks.The data shows that China’s agriculture has a certain rule of distribution in the global location.By summarizing the major investment host countries,conducting targeted rating of the country’s legal environment,studying the legal risks in investment,and putting forward preventive Suggestions,it can help the "going global" agricultural enterprises to go far and go steadily.This paper analyzes the legal risk of host country in overseas agricultural investment location selection by combining quantitative and qualitative methods.Firstly,based on the perspective of Chinese agriculture,the paper summarizes theories,defines concepts,summarizes risk factors,and analyzes global distribution characteristics.Secondly,by referring to and improving the rating methods and index structure of risk rating agencies at home and abroad,the evaluation system of the rule of law environment in the host country that conforms to the characteristics of China’s agricultural ODI was established.Analysis select China has or likely to engage in 51 countries agricultural investment in the future as the research base,and joined the China,so total 52 countries.Then collecting the world bank,the Ministry of Commerce and other authority figures,from the level of depth and breadth to select16 evaluation indexes,rating method with more objective and reliable of entropymethod and efficacy function into percentage system,calculated the 52 countries under the rule of law environment rating score.Then,SPSS was used to cluster the research objects and further explore the risk factors under the score and index performance.Finally,combining with a typical case of overseas investment in the field of agriculture,this paper analyzes the risk points of enterprises’ encounter with legal sanctions,and puts forward policy suggestions to prevent legal risks from both the government and enterprises according to the research results.The study found that the host country of the rule of law environment score is nearly same to the result of the major international rating agencies convergence,evaluation of the rule of law in developed countries is generally better than that of developing countries,the gap between the larger is the government effectiveness,corruption perceptions index,legal rights strength index,etc.,especially property protection indicators,lower scores countries have a big improvement space.Contrary to the trend of other indicators,the environmental policy indicators show that countries with higher scores in the rule of law environment pay more attention to environmental issues,while countries with less sound systems have looser policies,and are less likely to encounter legal sanctions for environmental protection.In terms of the location choice of agriculture in China,the whole region tends to be a region with a good legal environment.However,based on the principle of resource orientation and geographical proximity,some firms still chooses to invest in a country with a poor legal environment but high level of legal risk.In order to prevent legal risks,enterprises can choose their investment location according to the order of first approaching the country,then moving to the developing country,and then entering the developed country.It is suggested that priority should be given to the country with good legal environment and low risk level.If the host country belongs to the first category in the rule of law environment rating,special attention should be paid to environmental protection and governance.If the country belongs to the second category,first,it should abide by the local laws and regulations for operation,attach importance to the protection of labor rights and property rights,second,it should respect the local customs and culture,fulfill the obligations of the enterprise,and conduct territorial management with the local way of thinking and business philosophy.If it is a third country,the legal risks are extremely high,and all the factors involved in legal disputes should be paid attention to.At the same time,it should prevent complaints,actively respond to lawsuits,and strive for victory.Interms of government support,the first is to supplement legislation as much as possible to refine the overseas investment law;the second is to actively promote international cooperation;and the third is to improve legal services and build an overseas investment service system.