Outbound investment risks

China's outbound investment is set to increase as domestic companies look for overseas opportunities and expand their global presence. But risks still abound, as previous deals have shown.

A report by consulting company Ernst & Young says China's overseas investment will surge to $160 billion by 2020 and the debt-crisis-ridden Europe has become the top potential destination for Chinese investors.

The forecast is in line with official estimation. According to the Ministry of Commerce, China's outbound direct investment in the first half of this year increased 48.2 percent year-on-year to reach $35 billion.