China is vowing to step up its economic transformation in the next Five Year Plan. Many companies will receive preferential policies for overseas investments. The newly unveiled Handbook of Country Risk by Sinosure aims to help domestic companies choose ideal investments.

 

The Handbook, issued by China Export and Credit Insurance Corporation, says that over 20 percent of countries worldwide are facing surging risks. The 39 countries are mainly scattered in Latin America, Africa and Western Europe.

Meanwhile, investment risks in 48 countries are decreasing. Those countries are centered in the Middle and East of Europe, and in Mid and South Asia.

Liang Zhidong, Deputy Manager of China Export & Credit Insurance Corp. said "The risk level has decreased this year. It's because the world economy is recovering. But we also noticed that the impact of the crisis is still haunting many countries and spreading wider. So it's necessary to pay attention to the international market."

Regionally speaking, Greece, Ireland, Portugal and Spain are in the center of the European debt crisis, therefore they are facing higher risks.

In Asia, Japan and Pakistan are also facing high risks.

15 countries in Africa and Latin America face the highest risks.

The unstable investment environment did impact many Chinese investors last year.

Pan's enterprise suffered more than 9 million US dollars in irretrievable costs.

Pan Jinshan, Jiangsu entrepreneur said "Our costs are mainly caused by the bankruptcy of our clients. The largest bankrupted enterprise was in the Eastern Europe, there was also one in Japan, and some in Brazil."

Cheng Jun, Financial Department, Bank of China said "Banks are also facing similar risks. The foreign economic and financial environment is changing so fast that all investors need to learn how to adapt themselves to it promptly."

Aside from preparing those risks, experts also suggest enterprises better localize themselves and forge good relationships with local partners.

The Handbook of Country Risk is an annual analysis covering 191 countries except China.

It considers a country's economic development level, financial and fiscal conditions, as well as investment environment.