The Risk Analysis And Prevention Of China's Food Outward Direct Investment

Food is the strategic substance of the country,the necessity of human existence and development.In recent years,the NO.1 document and the "One Belt And One Road" guidelines have all proposed to push agricultural "going out".At present,China's agricultural resource is insufficient,not only face the pressure of the two markets and two kinds of resources,the arable land,fresh water,soil quality and other foundation resource is also insufficient.In addition,in recent years,our country is showing a "food production repeatedly growth,imports increased year after year"phenomenon,these circumstances directly accelerated the pace of China's food outward direct investment.This paper mainly analyzes the risks and related risk prevention of China's food outward direct investment.This paper studies the risk of China's food outward direct investment,the study highlights the risk of a macro level but weakening the micro-level like enterprise internal risk,and through the empirical analysis and case analysis to submit the prevention measures of China's food outward direct investment,with a small see big.The structure of this paper is divided into four parts.The first part introduces the background and the theory of foreign direct investment,the risks of foreign food direct investment,foreign direct investment risk evaluation method and risk prevention measures.The second part introduces the status and risks of China's food outward direct investment,this part of the risks mainly use four angles to analyze,which are political,economic,social,technical and environmental risk(PEST).'The analyses will based on the above four risks from the macro level and micro level.The third part through to build a fuzzy comprehensive evaluation system and combined with the case of Cofco acquired Nidera,the risk evaluation index is derived from the second part of the political risk,economic risk,social risk culture,technical and environmental risks,as well as the enterprise risk,this paper evaluate the enterprise risk from two parts,the investment risk of enterprise location selection and investment pattern choice,and then analyzed with Chongqing grain group overseas wasteland process,summing up experience and lessons,and then analysis the Japanese mitsui in Brazil's agricultural investment case,use its successful experience for reference,put forward risk prevention countermeasures and provide guidance for later.Finally,based on the analysis of the risks and related cases in the process of China's food outward direct investment,the paper puts forward the risk prevention measures from the two aspects,investment entity and the investment home country.The main conclusions of this paper are as follows:1.For investment home country,perfecting the foreign direct investment protection mechanism of grain is of great significance,most western countries have its oversea investment insurance system,it is mainly used for the host country political risk underwriting risk of civil unrest,war,etc,but our country set up by China's export credit insurance company only to commercial risk,lack of the host country political risk insurance system.2.For our direct foreign investment,actively participate in the development of international investment rules,signed the multilateral and bilateral agreement represented by the WTO's,when the host country political instability,and make the investment enterprises suffered losses,we shall have the right to demand compensation for the host country.3.The whole industry chain strategy based on the principle of responsible investment can minimize the risk of enterprises' direct investment in foreign food.Adopting the whole industry chain strategy,controlling the key link such as grain storage and logistics,can directly evade host country political risk and reduce economic risk accordingly.4.The PPP mode in direct foreign investment,can be "win-win" or "multi-win"through signing a long-term agreement with host governments,or licensing authority granted by the local government.