Research On The Risk Of Ofdi In China’s Communication Equipment Industry ——The Case Of Communication Enterprises

The overseas direct investment of Chinese enterprises booms and develops since the implementation of the “One Belt and One Road” cooperation proposal,In the 21 st century.China has been adopting active policies and encouraging investment enterprises with“qualified” to go abroad;in particular,the growth rate of overseas direct investment by China has been increasingly rising.However,the problem of overseas investment risks is an issue that the government and enterprises have to confront while the scale of overseas investment continues to expand.Being critical information infrastructure related to national security,telecommunications devices get close attention from more and more countries and enterprises.The scope and depth of overseas investment from China’s telecommunications equipment industry has been increasingly enhanced in recent years,but are confronted with a series of investment risks,too.Under such a background,it is of great significance for the development of the telecommunication industry and enterprises to conduct in-depth research on the risk of outward foreign direct investment in the telecommunication equipment industry.This paper mainly studies the risks and causes of outward foreign direct investment in China’s telecommunications equipment industry.First,it sorts out the current status,industry segmentation,regional distribution and investment entities of overseas investment in China’s telecommunications equipment industry.Then it analyzes investment risks and causes.We find that the major risks of overseas investment in the telecommunication equipment industry are mainly the rise of political risks in the host country,increasingly stringent and frequent security reviews,and increased intellectual property risks.Huawei and ZTE are the leaders in China’s telecommunication equipment industry.Therefore,it is of great significance for companies in the same industry to take this as a case to study the overseas investment risks.Finally,this paper puts forward an internationalized operational risk prevention mechanism from the national macro level and the corporate micro level based on the factors that affect the overseas investment risks of telecommunication equipment companies combing the experience of Huawei and ZTE’s outward foreign direct investment.