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China among the team of net capital exporters in global market

By Liu Xuan | chinadaily.com.cn | Updated: 2016-11-30 16:20

In 2015, for the first time, the amount of Chinese foreign direct investment, $145 billion, surpassed the amount of investment China received from abroad, and ranked in second place after the United States.

China became a net capital exporter, according to the blue book report on Chinese enterprises' globalization published by the Center for China and Globalization.

Chinese enterprises had more interests in Asian, European and North American countries, among which the US was the most popular destination, receiving $48.2 billion of investment, said the report.

Acquisition was the preferred strategy for Chinese enterprises investing abroad, in fields ranging from energy to real estate. In 2015, the total number of acquisition cases reached 498, 20.6 percent more than the year before, according to the report.

However, Chinese enterprises still faced challenges, said Wang Huiyao, president of the center.

Lower participation in international standard-setting is the key factor that affects the Chinese enterprises' operation and development overseas. Political and legal risks in targeting markets are also vital considerations for investors. Lack of communication with international non-government organizations, deficiency of international branding strategy and challenges from local labor unions are all on the list.

In response to these issues, the report provides solutions, including promoting Chinese standards, seeking the government's support on political and legal issues, as well as establishing relationships with other corporations and organizations.

The blue book, published for three consecutive years, added a new list of the top 10 Chinese enterprises that performed well in overseas research and development, including CRRC Co Ltd, Haier Group, Huawei Technologies Co Ltd, Lenovo Group Ltd and ZTE Corporation.

The center also engages in research on the One Belt One Road Initiative, analyzing the potential risks and providing suggestions for the future development of the strategy.

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