Research On Therisk Of Baic’s Direcr Investment In Africa Under The"Belt And Road" Initiative

In recent years,with the development of the "Belt and Road" initiative,the political and economic relationship between China and Africa has become increasingly close.BAIC has followed the National Development Direction and achieved international development by continuously optimizing the investment strategy in Africa.However,due to the political,economic and cultural differences between Africa and China,coupled with the lack of experience of enterprises in dealing with internationalization and internal management problems,enterprises will face some risks in the process of direct investment in Africa.This paper focuses on the case of BAIC direct investment in Africa,trying to analyze and study the risks in the investment activities and explore the solutions,the aim is to reduce the risk of BAIC direct investment in Africa,improve the return of investment and promote the sustainable development of investment.This paper extends the risk analysis to four African countries,South Africa,Angola,Nigeria and Egypt,which have more trade cooperation with China,with a view to increasing the scope of the study.By using the theory knowledge of hierarchical holographic modeling(HHM),integrated mould and evaluation method,risk management and so on,this paper constructs the risk evaluation process of BAIC direct investment in Africa,and tests the validity of the process.The result shows that the risk index of BAIC direct investment in Africa is 3.59,and the risk rating is above the middle level.Finally,based on the risk assessment,from the point of view of risk prevention and avoidance,this paper puts forward the risk prevention and control strategy of BAICdirect investment in Africa from the two levels of the state and the enterprise.