New | Where are the riskiest places in the world for Chinese to do business? This map tells you
Venezuela is the riskiest destination for Chinese to invest – worse even than Iraq and Sudan – while Germany is the safest, followed by the United States and Britain.
That’s according to the latest findings by the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, a government think tank.
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While overseas investment continues to grow – China’s outbound investment rose 16 per cent to US$104 billion in the first 11 months of 2015 – some companies have suffered huge losses on overseas deals.
Deals that have gone pear-shaped include a controversial water dam project in Myanmar and a delayed copper mine development in Afghanistan.
The institute assessed 57 countries, mainly non-tax haven destinations for Chinese outbound investment, under a home-grown rating system to provide a risk map for Chinese investors venturing abroad.
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“As Chinese companies’ outbound investment is expanding, the risks associated with such investments are rising considerably,” the government think tank said. “To make China’s overseas investments more successful, it is important to improve risk warning, risk recognition and proper risk management.”