With the deepening of global economic integration , the relationships between thecountries all over the world have become closer and the impact of systematic risk from the globalmarket on individual countries goes up .Therefore ,research on the risk of investment destinationmust involve an assessment of global systematic risk .At the same time ,with the depth ofregional integration , for example the use of a single currency and close cooperation amongEuropean countries , countries with close geographic or economic connections also share acommon regional systematic risk .In the study of the risk of overseas investment ,systematic riskmust be distinguished from the idiosyncratic risk of the destination .The existing research on theoverseas investment risk at the country level mainly focused on the analysis of″country risk .″Using a modified Akdogan international risk decomposition model ,the overall risk of China,soverseas investment is differentiated into global systematic risks ,regional systematic risks ,andunsystematic risks .The main findings are reviewed below .(1) The overall risk was significantly lower in Europe ,North America ,and Oceania than inother regions ,owing to the relatively small economic fluctuations in those mature economies .Bycontrast ,Asia and South America bore higher overall risk .The emerging countries and regions inthese regions had higher economic fluctuations ,which may explain the high overall risk .(2) The proportion of global systematic risk in the overall risk was significantly high in thedeveloped countries of Europe , reflecting these countries close ties to global economicfluctuations .From the perspective of country-specific characteristics ,small and open countriesand areas were more vulnerable to the impact of global systematic risk .The United Kingdom ,South Africa , and Luxembourg , where China had large investments , had particularly highproportions of global systematic risk . High attention should be paid to these countries . Inaddition ,North American and Oceania countries also have high proportion of global systematicrisks .(3) Regional systematic risks were higher in Asia ,Europe ,and some countries of Americaand Oceania ,which were the most important destinations of China,s overseas investment .Specialattention should be paid to Indonesia , Korea , Mongolia , Pakistan , Australia , Germany ,Luxembourg ,the United Kingdom ,and Canada ,which had relatively high investment volumes ofChinese investment but high regional systematic risks .Thus it is advised that investors couldincrease investment to South America to diversify regional systematic risk .(4) The proportion of idiosyncratic risk was remarkably high in African countries .Chinainvested in a number of African countries but for each country the volume of investment was low .In this way the idiosyncratic risk had been effectively diversified .This investing strategy shouldbe continued .This paper differs from the existing research in that the latter only focused on the risks ofoverseas investment in a single country or area while this study has analyzed the risks of overseasinvestment from the perspective of systematic and unsystematic risk based on the sample ofChina,s main OFDI targets .To some extent ,this paper has filled in a gap in this research area ,and has provided reference for Chinese overseas investment from the viewpoint of systematic riskprevention .Moreover ,the conclusion made by this study on the countries with high systematicrisk is different from the previous literature and it reflects better the closely connected moderninternational market .The limitation of this paper is that this study hypothesize that the levels of systematic andunsystematic risk do not change during the time range of our research .Future research can usemonthly data to measure the risk of the sample countries (areas) year by year and investigate thetrends of the risk changes across time .