Risk assessment of foreign direct investment of chinese agricultural enterprises

Abstract

EN: With the global trend of foreign direct investment, Chinese agricultural enterprises have also increased the pace of foreign direct investment. At present, Chinese agricultural enterprises have invested in development in more than 30 countries, including Southeast Asia, Africa and Latin America. Ocean fisheries development is underway in the high seas of the Pacific, Atlantic, and Indian oceans. There are also planting and forestry bases in the Russian Far East and Central Asian countries. The benefits of Chinese agricultural enterprises' overseas investment are obvious. It is not only conducive to Chinese enterprises to use foreign resources, funds and technology, but also to avoid various barriers and increase the international market share. However, while encouraging China's agricultural enterprises to go global, we should also be clearly aware that the overseas direct investment of China's agricultural enterprises is still in the primary stage. The level of agricultural enterprises is still relatively low, and overseas direct investment faces a variety of risks. Analysis and studying these risks will help Chinese agricultural enterprises to effectively prevent and control them in foreign direct investment. By taking into account the integrity and dynamics of the overseas direct investment environment, the risk evaluation index system of foreign investment projects of Chinese agricultural enterprises is constructed. Representative items were selected for risk evaluation using hierarchical analysis and entropy weight coefficient method. The results show that there are prominent risk factors such as international agricultural market risk, political and legal risks of host countries, domestic institutional barriers and enterprise own technical restrictions. In order to prevent and reduce investment risks, the government should increase policy support and set up special agricultural overseas investment service institutions. Enterprises should establish an effective risk evaluation mechanism to promote the research and development and promotion of agricultural technology.