Since the Belt and Road Initiative was proposed in 2013, investment and trade cooperation under its framework has promoted the common development of countries along the routes. However, due to the significant differences in political systems and legal frameworks among these countries, complex legal risks have also been implicitly involved. In light of this, this paper will explore the construction of a dual-pronged governance approach that equally emphasizes “law” and “policy” from two dimensions: transnational legal coordination and contract dispute resolution. This aims to provide legal safeguards for the high-quality development of investment and trade along the Belt and Road. This paper analyzes and explores legal risks in cross-border investment and trade through three methodologies: case studies, comparative analysis, and legal text analysis. Research indicates that risks arising from cross-border investment and trade primarily fall into three categories: contractual risks, policy risks, and geopolitical risks. This paper proposes that the method of "law and policy governance" should be adopted, and the dynamics of the host country's society and policy should be paid attention to while compliance construction, so as to avoid the rigid use of legal provisions to solve problems. It not only provides a new perspective for the legal guarantee of cross-border investment and trade under the background of the "Belt and Road Initiative", but also offers specific guidance for countries along the routes in their investment and trade practices.

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