After the founding of South Sudan, China and South Sudans economic and trade relations have developed rapidly.At present, nearly 80 considerable-size Chinese companies have registered in South Sudan and operated mainly in the fields of energy and resources development, infrastructure construction and service industry, which is one of the important driving forces for South Sudans National Construction and leap-forward development.However, despite the good results have been obtained, due to the unstable local investment and operating environment as well as their own relatively limited capacities, Chinese companies in South Sudan are facing challenges of political turmoil, serious law and order problems, immature policy and management, infrastructure scarcity, serious shortage of materials, recruitment difficulties and labor disputes.Moving forward Chinese companies should explore conflict-prevention mechanisms; enhance their self-image;actively fulfill their social responsibilities; and improve their treatment of local staff.The Chinese Government should strengthen consular protection; improve the regulation of overseas enterprises; provide more guidance to the private sector; increase efforts to support peace and security; and promote a better understanding of China.The Government of South Sudan should develop more stable policies and regulations; protect the legitimate rights and interests of foreign enterprise; and better manage the effects of foreign investments.