The globalization of the economy offer a free environment to the international capital flows. Along with the development of Multinational Corporation’s business, the divestment of Multinational Corporation is increased, and negative influences on the host country are gradually apparent. Based on previous studies, expert interview, field survey and questionnaire, this dissertation focuses on the risk of Multinational Corporation’s divestment as viewed from the host country.Before forecasting the behavior of divestment, it needs to build the theoretic analysis frame to describe and explain it. From the analysis of the divestment’s motivation-behavior involvement path and its dynamic process, it finds that the resistance of host country and social would deeply affect the determination of the MNC’s divestment. By induction and deduction, the dissertation discusses the effect factor of divestment and the risk of divestment to the host contry which are two key problem in the divestment risk identification as viewed from the host country. After dicussing the government regulation theory, it shows that host country need to do something to divestment, but it must balance the policy of inspiration and restriction. After analyzing the function and signification of government monitoring and early warning, the author designs the framework of government monitoring and early warning, explores the method of government monitoring and early warning.the dissertation studies the divestment risk of MNC in China by multi-variable estimate. The result shows that key effect factor are return on assets, economic policy change etc. With case study, motivation and effect factor have been summarized.Finally, In order to minimize the impact of divestment to the host country, the author discusses the method of government on guard and intervention mechanism in three dimensions: the government on guard mechanism, the government aid mechanism and the safeguard mechanism.