Managing political risks of Chinese contracted projects in Libya
Chinese construction companies undertook many overseas contracted projects based on the competitiveness of better quality and lower prices. As more and more Chinese constructors go global, the political risks in host countries become increasingly noticeable. The contracted project is the basic form of Sino-Libyan economic cooperation. Since the Libyan crisis erupted, Chinese constructors have experienced operations discontinuity, camp attacks and robberies, equipment loss and damage, employee injuries, and loss evaluation. This paper assesses the political risk for Chinese contracted projects at three levels and studies their countermeasures to this emergency and the effects of political risks on Chinese constructors in Libya. The paper includes a literature review and then shows how contracted projects are China's major presence in the Libyan economy. It then analyzes the political risk in Libya before and after the crisis erupted.