The first guideline policy document for Chinese enterprises
investing overseas was approved Wednesday by China's State Council. Entitled "Opinions on
Encouraging and Regulating Overseas Investments by Chinese
Enterprises" the document was adopted at a meeting chaired by
Premier Wen Jiabao.
The document calls for improved supervision of the management of
state-owned assets overseas, the establishment of appropriate risk
assessment procedures and cost management systems for overseas
ventures.
When investing overseas, the document says, Chinese enterprises
must observe local customs and laws, be fair and transparent in
dealing with contracts, protect the interests of local employees
and the environment and support local charities.
Chinese enterprises should strive to improve the quality of
their products and services to boost their international
competitive edge, the document states.
In response to growing terrorist threats the document calls for
more efforts to be made to protect the safety of employees and the
properties of overseas Chinese businesses.
It also urged overseas businesses to safeguard their image as
well as that of the country and spread China's policy of peaceful
development.
China is recognized as a rising international investor. Its
overseas investments surged 123 percent in 2005 to reach US$57.2
billion at year end. That figure is expected to rise by a further
60 billion dollars by 2010.
(China Daily October 26, 2006)