Risk evaluation and prevention of China’s investment in countries along the belt and road

Abstract

The Belt and Road Initiative is a major Initiative proposed by Chinese President Xi Jinping in 2013. Research on the risk prevention and control of China’s financial investment in countries along the Belt and Road has become a very hot topic in the world. This research focuses on the risk evaluation methods and prevention and control countermeasures of China’s foreign investment under the Belt and Road Initiative. First, based on the analysis of the existing studies on economic investment evaluation, an intuitionistic fuzzy multi-attribute evaluation method based on entropy method and G1 method is proposed. The essence of the proposed method is to combine the intuitionistic fuzzy set theory with subjective and objective evaluation methods, which improves the disadvantage of the original evaluation method taking too much subjective factors into consideration. This study applies the proposed method to the economic risk evaluation of China’s outward foreign direct investment (OFDI), constructs a 17-indicator economic risk system, and uses this method to rank the importance of the 17 indicators. The more important contribution is that this paper not only achieves improvements at the theoretical level and innovation at the practical level, but also condenses the research conclusions into three pieces of countermeasures and suggestions on China’s investment in countries along the Belt and Road. This research can provide theoretical support for Chinese government to make financial investment decisions in countries along the Belt and Road, and can also help countries along the Belt and Road to actively integrate into the Belt and Road Initiative, and promote the high-quality social and economic development of the countries along the Belt and Road.