After more than thirty years of progress, China's outbound investment has already achieved a level of success in terms of its magnitude and increasing diversity of industries, investment locations and investment objectives.
Looking forward, China's economic development will drive outbound investment by companies into a new phase, where the scale of investment will become much larger, the industry coverage will become broader, and the number of high value-added investments will increase.
Outbound investment will help Chinese companies achieve more technological and value-added growth and ultimately promote the transformation in China’s economic development model and improvement in the quality of economic development. However, Chinese companies will face many challenges in achieving these new goals. To address these challenges, they should pay attention to five areas: having a clear strategy to guide overseas investment; managing risks; dealing with problems that arise in post-deal integration; establishing a positive image overseas; and encouraging and supporting Privately Owned Enterprises (POEs) to ‘go out’.
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