Overseas investment and globalization help Chinese enterprises mature in the process of their competition with overseas counterparts and China's 'Belt and Road' initiative will create both opportunities and challenges to Chinese firms, according to experts participating in the Year Ahead 2016 Summit held by Bloomberg Busienssweek/China on Monday.
Li Shanquan, managing director and senior portfolio manager of Oppenheimer Funds, said Chinese government's proposal of the 'Belt and Road' initiative has created both opportunities and challenges to Chinese enterprises.
The initiative will be a long-term policy and going abroad is not an easy task. Overseas investment has to focus on yields and returns on capital, or it will be a waste of money. And it will be a huge challenge for Chinese enterprises to find out good projects and sectors for investment and make profit.
Chinese government has provided strong support for Chinese enterprises going global, nevertheless, such support may raise their rivals' concern about Chinese investors' government background and they might be knocked out of the market for the reason.
Both Chinese government and enterprises should know international market and business rules better in the process of globalization, suggested Li. Chinese enterprises have paid much tuition in making overseas investment and the good news is many of them have learned how to do business in the right way and become mature, added Li.
Patrick Haverman, United Nations Development Programme Resident Representative a.i. in China, said the UNDP expects Chinese enterprises to improve both hardware and software of overseas markets while making investment.
For example, there are still a lot of small villages in countries alongside the 'Belt and Road' initiatives and Chinese enterprises are suggested to encourage local people participating in the development programs of the 'Belt and Road' initiative, the people should be trained and become capable of living a higher standard of life, lifting themselves out of poverty, and realizing sustainable development.
Since China's launch of the globalization strategy in 2000, Chinese enterprises have made significant progress and China's overseas investment is likely to surpass its inbound investment for the first time ever in 2015 or 2016. (Contributed by Luo Jingjing, luojj@xinhua.org)
Latest comments