New Chinese policies to encourage firms to expand internationally

Out-Law News | 14 Dec 2015 | 10:27 am |

China plans to introduce policies that will help Chinese businesses to go global, an official from the Ministry of Commerce (MOC) told state-owned news agency Xinhua . 

The MOC will work with other relevant ministries to push policies for outbound investment, Xinhua said.

It will also push for cooperation between countries involved in China's Belt and Road expansion initiative, encourage high value-added investments and improve information services and risk-control measures for businesses overseas, Zhou Zhencheng, director of the MOC's Department of Outward Investment and Economic Cooperation told Xinhua.

Outbound investment from China is growing quickly but is still at a "preliminary level" compared with developed countries, Zhou said. China faces challenges including a lack of innovation and growing geopolitical risk, he told the news service.

Overseas nonfinancial investment from China for the first ten months of 2015 grew 16.3% compared to the same period in 2014, reaching 589.2 billion yuan (US$92.2 billion), according to MOC statistics, Xinhua said.

The business was done by 5,553 companies in 152 countries, Xinhua said. In the 49 countries involved in the Belt and Road initiative, outbound direct investment reached 13.17 billion during the period, up 36.7% year on year, Xinhua said.

The growth in outbound investment will continue to surpass the rise in foreign direct investment into China, Zhou said, according to Xinhua. 

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