With the development trend of economic globalization, international investment has replaced international trade as the most important driving force of international economic development. Based on the practice of overseas investment in China, this paper focuses on the legal risks of overseas investment in China. These problems mainly include the definition of legal risks, the causes of legal risks, the legal risks faced by foreign investors in China and how to prevent these risks. The overall structure of this paper consists of five parts, a preface and a postscript. The foreword states that overseas investment is the inevitable trend of China's economic development, and domestic enterprises are scrambling to develop overseas. While gaining greater development space, these investors have also encountered various legal risks, especially in recent years, some large domestic enterprises have encountered major legal risks overseas, causing huge economic losses to enterprises and the country. However, overseas investors, government administrators and academic circles in China have a serious lack of understanding and research on legal risks. Therefore, the author believes that in the era of rule of law, it is necessary to strengthen the research on the legal risks of overseas investment of enterprises, attach great importance to and actively prevent legal risks. The first part of this paper first defines the meaning of legal risk, and expounds that legal risk is neither illegal risk nor different from legal responsibility and liability for breach of contract, but refers to the possibility that people will have adverse legal consequences against the subjective will in the process of production and life because they don't understand legal norms, ignore legal review and evade legal supervision. This part also briefly analyzes the characteristics of five aspects of legal risk: non-standard, accident, disadvantage, insurability and prevention. The second part of this paper summarizes several main legal risks of overseas investment in China. Including the legal risks such as the choice of legal form, contractual behavior, operation, intellectual property rights, overseas investment tax and corporate legal and cultural differences in overseas investment. The third part of this paper mainly analyzes the causes and harmfulness of legal risks of overseas investment. The main reasons for the legal risks of overseas investment include imperfect legislation and discrimination in law enforcement in the host country, imperfect domestic legal system in the investor's home country, seriously lagging information service, weak legal awareness of overseas investors, and imperfect internal management and governance system of investment enterprises. Legal risks may bring commercial losses to overseas investors, cause great waste of social resources and inhibit the development of overseas investment. The fourth part of this paper mainly puts forward the measures to prevent the legal risks of overseas investment from the perspective of the home country. Put forward to strengthen legal risk publicity; Provide legal information of major overseas investment countries; Improve the legal system of overseas investment approval to prevent illegal investment; Using international treaties to prevent the host country from abusing the legal system; Make full use of judicial assistance and other measures to prevent legal risks. The fifth part of this paper mainly puts forward the measures to prevent the legal risks of overseas investment from the perspective of overseas investors. Strengthen legal knowledge training and improve investors' legal awareness; Improve the internal governance mechanism of enterprise legal risk prevention, establish and improve various rules and regulations of enterprises, improve the corporate governance structure, set up the enterprise legal consultant system, and carry out effective contract management in three stages: contract signing, performance and contract text filing; Improve the management and protection mechanism of intellectual property rights of overseas investment enterprises; Finally, strengthen the construction of corporate legal culture, carry out various activities to publicize legal culture within enterprises, select overseas Chinese as cross-cultural management talents of overseas investment enterprises, and make full use of cultural information platforms.