State-owned enterprises urged to expand overseas (2)

China’s Outbound Direct Investment increased to more than 74 billion dollars in 2011, making it the world’s 6th largest investing country.

SOEs however, have encountered many obstacles in meeting their overseas plans. Foreign governments for instance, have on several occasions blocked proposals on national security concerns. Reported loss was also linked to a lack of knowledge about foreign markets, poor management and insufficient number of qualified workers.

But despite the challenges, Chinese SOEs continue to show strong commercial motivation, and many of them are operating in a manner similar to international companies.

China’s emergence as a major force in the international investment arena has caused some anxiety in the world’s capitals. But the country has made it clear that this will be a major trend for the years to come. And as China’s state-own enterprises seek business opportunities worldwide, they are also urged to be responsible corporations in foreign countries.

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