Chinese companies, long-time
recipients of foreign investment, have started to export their
funds and technologies amid global rising demand for economic
cooperation partners.
More than 50 China-funded firms are doing business involving
industry, consumer goods and logistics in the US State of Illinois,
while 10 years ago there was none, said Norman L. Li, managing
director of the state's Far East Bureau.
"Chinese companies, particularly those specializing in
construction, electronics and bio-technologies are warmly welcomed
to invest in Illinois, the United States' fifth largest state and
the hub of manufacturing, trade and transportation," said Li at his
booth in the exhibition hall of the ongoing China International
Fair for Investment and Trade, held in this coastal city of east
China's Fujian Province.
He said that Chinese entrepreneurs
are hardworking and flexible, which leads to high corporate
efficiency. Moreover, Chinese products are of high quality and
price competitive.
"China will become a major source of global investment sooner or
later, although the country is still young compared with Britain
and Japan -- the top two investors in Illinois," Li said.
Many famous Chinese companies, including COSCO, Haier, Huawei, and
Baosteel, have introduced capital, technologies or administrative
methods to Italy, according to Barbara Gasperi, trade officer of
the Italian Trade Commission I.C.E.
Busy answering questions from delegates of Chinese companies at the
fair, Gasperi said she really hoped that more Chinese investors
build up confidence for business prospects in Italy -- a
Mediterranean country with geographically strategic
significance.
Claiming that Chinese investors are "innovative" and "getting
increasingly popular in the world capital market", the Italian
officer said that China, which is developing fast and peacefully,
would always benefit the world economy.
Companies and organizations from 65 countries and regions,
including Canada, Germany, Turkey and Thailand, among others, are
promoting investment environments and projects toward numerous
Chinese participants at the annual fair. The fair was launched 11
years ago as a platform to facilitate international economic and
trade cooperation.
China set forth the "going-beyond-the-border" strategy in 1999,
encouraging domestic enterprises to invest and do businesses
abroad. Membership in the World Trade Organization has allowed
China to enjoy a more open world market.
More than 10,000 Chinese companies have established firms in about
160 countries and regions as of 2006, involving US$73.3 billion in
accumulated direct investment, said Deputy Minister of Commerce Wei
Jianguo when addressing a conference encouraging mainland
enterprises to invest in Hong Kong.
In the first half of this year, China's investment in overseas
markets hit US$7.8 billion, up 21.1 percent from the same period of
last year, according to the Ministry of Commerce. North America and
Asia are the top two investment destinations.
According to the state plan for commercial development between 2006
and 2010, China will encourage more domestic companies to set up
businesses abroad, establish technology research centers and firms,
and improve international cooperation in the service sector.
To support the outbound investment momentum, the People's Bank of
China, the country's central bank, will scrap unnecessary controls
on foreign exchange reserves and simplify administrative
procedures, said Zhou Xiaochuan, governor of the central bank.
The bank will encourage domestic companies to raise capital through
various means including bank loans, going public and bond sales,
and will crank up efforts to develop more products on the foreign
currency markets to help them shun risks brought about by the
changes in market exchange rates and interest rates, Zhou
promised.
However, Chinese investors, still lagging behind enterprises from
developed nations in terms of overall capacity and experiences,
should be fully aware of their destination market and adopt proper
investment strategies, warned Liu Yingkui, a professor of economics
with the Shandong College of Finance.
(Xinhua News Agency September 10 2007)
