1、 Actively assuming social responsibility can greatly reduce political risks.

Political risk refers to the possibility of economic losses to foreign enterprises or investors due to changes in the domestic political environment of the host country or investment country, or changes in political relations between the host country and other countries. Its uncertainty directly affects the implementation of overseas investment strategic goals of enterprises. Due to the fact that overseas investment by enterprises is not simply an economic activity, sometimes it involves the domestic interests of the host country. The host country government often uses political means to intervene in investment behavior, leading to the politicization of commercial projects. In fact, in countries with abundant resources, after regime changes, foreign investment policies will also undergo some changes, posing political risks to overseas investment enterprises.

To reduce political risks, on the one hand, before making overseas investments, we can refer to the sovereign ratings of countries around the world by international rating agencies; On the other hand, overseas investment enterprises should assume more social responsibility, respect local culture, integrate into local society, and lead local economic development. Overseas investment enterprises should pay attention to establishing and maintaining constructive, extensive, and frequent contact and communication with local governments and communities. They should establish a good sense of social responsibility and give back to the local community without any conditions, so that those communities or villages that accept mineral projects can feel the company's sense of social responsibility. Company employees should identify themselves as part of the community or village. Conducting community or village funding programs will be very beneficial to China, as it not only gives Chinese investors a caring and warm image, but also helps to enhance China's national image in front of foreign companies and media. At the same time, actively assuming social responsibility can bring more convenience and benefits to Chinese enterprises' overseas investment.

2、 Seeking support from professional institutions can effectively mitigate legal risks.

Overseas investment is a complex combination of legal actions, and all corporate actions and legal documents related to investment must comply with the requirements of the host country's laws. If there is a conflict with the host country's legal provisions, it will inevitably generate legal risks and affect the smooth progress of overseas investment.

Chinese enterprises often lack professional talents who are proficient in both foreign laws and foreign languages when investing overseas. Therefore, before investing, it is necessary to seek the support of professional intermediaries, including investment bankers, consulting management consultants, lawyers proficient in the laws of the target country, accountants from multinational accounting firms, etc. They will provide comprehensive services in the process of seeking projects, negotiating investment agreements, and integrating.

Enterprises investing overseas should be based on scientific and comprehensive analysis and argumentation of the target market, especially when choosing partners and consulting institutions, and caution should be exercised. Firstly, it is necessary to conduct research on the overall legal system of the country where the investment is located. Secondly, legal due diligence should be conducted on the invested entity or target asset, followed by planning, designing transaction structures, and financing methods. This can effectively avoid the legal risks of overseas investment by enterprises.

3、 Analyzing one's own strength based on the situation can effectively avoid financial risks.

Chinese enterprises often encounter a shortage of funds when investing overseas. One is financial barriers, which means that Chinese banks provide