By Jiang Wei (China Daily)
Updated: 2007-08-03 11:27

The Chinese government can provide more help to overseas Chinese investors who often find themselves hamstrung when trying to invest abroad, experts say.

China's outward direct investment totaled $16.1 billion in 2006, up 31.6 per cent over the previous year, according to Ministry of Commerce statistics.

When they try to invest abroad, Chinese enterprises lack a network of people and sales channels, knowledge about the local market and communication, Wu Jianmin, president of China Foreign Affairs University, told China Daily.

"They need help from diplomatic resources," Wu said.

"Diplomatic resources" refers to a wide range of people and institutions that could provide Chinese investors with knowledge of local markets.

The resources include China's embassies in the investment destinations, scholars, and retired diplomats and officials with a good command of the country.

For example, an investor might find it very difficult to get in touch with key officials in a country when he intends to invest, Wu said. "But diplomatic resources can easily help them find the right person."

"We lag behind by countries such as the United States (in terms of helping enterprises' outward investing)," he said.

The Chinese government will encourage and help qualified enterprises to invest abroad, Vice Commerce Minister Liao Xiaoqi told the East Asia investment forum in Beijing. A main measure is to establish overseas economic cooperation zones, which both accelerate Chinese investors' "going out" and benefit local industrial clusters.

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