China calls for intl cross-border investment rules

BEIJING - A senior official of China's commerce ministry on Monday called for the establishment of international rules for cross-border investment.

"There are no internationally prevailing rules for cross-border investment and that is one of the reasons why Chinese companies have encountered various barriers in outbound investment activities," said Chong Quan, deputy representative for China's international trade talks.

He made the remarks in an interview with Xinhua on the sidelines of an annual national conference on commerce legislation.

At present, international investment rules are substantially fragmented. China has so far signed bilateral investment treaties with 130 countries. Globally, a total of 3,164 international investment agreements had been signed by the end of 2011, according to figures from the United Nations Conference on Trade and Development.

The United States and some European countries often have preconceptions when it comes to Chinese companies, especially China's State-owned enterprises. As a result, they are inclined to regard Chinese firms as a possible threat to their national security, Chong said.

China's outbound direct investment in non-financial sectors surged 25.8 percent year-on-year to $58.17 billion during the first 10 months of 2012, according to figures released by the Ministry of Commerce last Tuesday.

Ministry figures showed that the country's outbound investment grew by an average of 44.6 percent every year from 2002 to 2011.