Abstract:From the beginning of the 21 century China has become a big emerging one of large overseas stated-owned investment. But in China the system of modern enterprise governance is not sound. The reform of SOEs is still uncompleted. The strategic purposes of the stated-owned investments and the support to them are manifest. So China's stated-owned investments suffer special challenges. China's countermeasures are to reduce the stated-owned investments, improve the system of modern enterprise governance, separate government functions from enterprise management, operate the SOEs on the commercial basis, abase the national strategic purposes of and the financial support to the oversea stated-owned investments. The countermeasures that shall be taken by China's investors are to summarize the experience and lessons of China's stated-owned investment's success and failure, to organize and operate the stated-owned investments according to the international standards, to dilute controlling rights, to give up or reduce the sensitive areas of business and to take other mitigation measures. So the security risks can be reduced or eliminated to pass the review.