Private enterprises' overseas investment booms

The "Implementation Advisory Regarding Encouraging and Guiding Private Enterprises to Invest Overseas" jointly announced by 13 ministries and commissions including the National Development and Reform Commission is encouraging the private companies that have had an overseas investment or intend to invest abroad.

Industry insiders believe that the jointly issued "Implementation Advisory" has manifested strong policy support by the 13 ministries and commissions and created a good policy environment for the private enterprises to invest overseas.

Private enterprises will give full play in overseas investment

"Sany Group had invested 200 million U.S. dollars in Indonesia last year and it has preliminarily completed the industrial layout abroad up until present," said the principal of Sany Group, a large private engineering machinery enterprise in China.

At present, Sany Group has invested and constructed research and development bases in the United States, Germany, India, Brazil and Indonesia in addition to its headquarters in Changsha. Its gross sales have reached over 50 billion yuan in 2010, with international sales volume reaching about 2 billion yuan, according to the Sany Group.

Sany Group is only one of private enterprises increasingly investing in foreign countries.

According to statistics of the Ministry of Commerce of the People's Republic of China, Chinese investors had had a direct investment in 1,096 foreign enterprises of 109 countries and regions in the first quarter which has a sluggish imports and exports, with direct non-financial investment reaching nearly 17 billion U.S. dollars, an increase of about 95 percent year-on-year.

According to Li Zhipeng, associate researcher of Chinese Academy of International Trade and Economic Cooperation, private enterprises have been increasing their overseas investment in recent years. The overseas investments of some private enterprises in Jiangsu, Liaoning and other regions have become the main force of China. The private enterprises have also turned into an important force of the overseas investments in some major fields.

"China's private enterprises really have a fast growth in their investments in foreign countries," Li said to the People's Daily.