Reserach On Investment Risk Management Of Chinese Mining Companies In Mongolia

The 21st century is the era of global economic integration and development.Therefore,it is unrealistic for a country to develop its own economy solely on its own.Taking the road of internationalization and cooperating with other countries has become an inevitable choice for countries to develop their own economies.Mongolia has abundant mineral resources,and China is one of the main importers of energy and raw materials in the international market.Therefore,the economic complementarity between Mongolia and China is obvious,and China has also become Mongolia's largest investor country for ten consecutive years.Judging from the history of China-Mongolia cooperation,although China-Mongolia economic and trade cooperation has a sound political,economic,social,and geopolitical foundation,there are many frictions in the cooperation between the two countries,which in turn increases the risk of Chinese companies investing in Mongolia.How to identify these risk factors and implement effective risk management are key issues that Chinese mining companies must consider for direct investment in Mongolia.Based on the relevant theories of risk management,this paper uses the basic analysis tools of statistical analysis to study the risk management of Chinese companies' investment in Mongolia's mining industry.This article believes that for Chinese mining companies in Mongolia,first,they need to understand Mongolia's political and legal factors,and only compliant operations can ensure the company's legal existence;secondly,Mongolia's economic stability,labor supply,Taxation and financial environment,exchange rate control and other factors determine the size of the economic risks faced by Chinese mining companies;third,humanities and social factors such as labor supply,labor protection,and cultural differences affect the social risks faced by Chinese mining companies;Fourth,the market risks,procurement risks,technical risks and management risks faced by Chinese mining companies in Mongolia constitute the company ' s operating risks.Therefore,this article conducts risk identification and assessment from four perspectives: political risk,economic risk,social risk,and business risk.Based on the analysis of the status quo of Chinese mining companies 'investment in Mongolia,the problems faced by their investment in Mongolia were sorted out,and the analytic hierarchy process and fuzzy comprehensive evaluation method were used to analyze the problems faced by China ' s mining investment companies in Mongolia.Political risks,economic risks,business risks and social risks are identified and evaluated.Empirical research shows that these companies face relatively low political and economic risks when investing in Mongolia,while business risks and social risks are relatively high.Finally,this article gives corresponding risk control countermeasures for the above risks.As an international student from Mongolia,the research in this article enriches the research literature on risk management in the field of international direct investment,helps Chinese mining companies in Mongolia implement effective investment risk management,and also helps Mongolia attract more foreign capital.Enterprises come to invest.In the process of identifying and evaluating investment risks,this article uses expert scoring methods,and the opinions of experts may affect the results of the research.Therefore,the research in this article is subjective.