Latest News:  
Beijing   Sunny    21 / 8   City Forecast

Home>>Opinion

Mutual trust needed for nations' common progress

By Wu Lejun and Sun Tianren (People's Daily)

15:36, September 30, 2011

Edited and Translated by People's Daily Online

The fourth annual Bridges China Dialogue was held in Geneva, Switzerland on Aug. 27 and Aug. 28. Attendees discussed the opportunities and challenges facing China's investment abroad and made constructive suggestions for the sustainable development of Chinese companies' seeking to invest overseas.

China's outbound investment still in its infancy

According to statistics from the Chinese Ministry of Commerce, Chinese enterprises invested 68.8 billion U.S. dollars abroad in 2010, ranking fifth in the world. However, China's overall outbound investment is still in its infancy. China’s vice Commerce Minister Chen Jian said at the high-level conference that as a latecomer to the arena of outbound investment, China still has a lot to learn and much potential to develop.

Stéphane Graber, a delegate from the Economic Development Office of the Geneva state government, said that the outbound investments of British and U.S. companies during an economic boom in the last century accounted for about 50 percent of the two countries' total foreign trade volumes. By contrast, the percentage for China is only 6 percent. Therefore, it is true that Chinese enterprises have just set foot abroad.

Rufus Yerxa, deputy director-general of the World Trade Organization, said since China's accession to the WTO 10 years ago, it has taken a responsible attitude toward international trade affairs, made active efforts to advance the Doha Round negotiations and worked hard with other countries to greatly improve the system of global economic governance.

Ricardo Meléndez-Ortiz, chief executive of the International Centre for Trade and Sustainable Development, organizer of the Bridges China Dialogue, also said in an interview that Chinese companies are becoming a leading representative of China in global competition. Their outbound investments have not only boosted their own development but also actively promoted world economic development.

Strengthen research, risk management

Ross Hans, senior adviser for Asian affairs from the Swiss Foreign Ministry, said that Chinese enterprises face risks in many areas, including finance, commerce, product quality, safety and human resources, when they go global. Risk levels vary in different societies, and the key point is how to manage risks scientifically.

Liang Guoyong, an economic affairs officer from the Investment and Enterprise Division of the U.N. Conference on Trade and Development (UNCTAD), said that there were two ways for Chinese enterprises to invest overseas: direct investment and step-by-step investment according to their abilities.

He believes that the latter is more suitable to Chinese enterprises in the long run because such an investment approach is more favorable to risk management. Li Quan, Director of the Program on International Conflict and Cooperation (PICC) at Texas A&M University, said that Chinese enterprises going global should voluntarily avoid "political risks" and should, in particular, strengthen research and improve their abilities for risk management.

【1】 【2】

Email|Print|Comments(Editor:姚春)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. National flag raising ceremony held in Beijing

  2. Bluecars for green transport in Paris

  3. Five-month-old twin girls go home - separately

  4. Beautiful music firework show in Shanghai

Most Popular

Opinions

  1. Q&A with Michigan Gov. Rick Snyder
  2. Will China be Europe's savior?
  3. Taiwan arms sales becomes US political spell
  4. Mutual trust needed for nations' common progress
  5. China's SMEs now stranded in credit crunch

What's happening in China

Buzz in ancient city

  1. China calls for boycott on online falsehoods
  2. Typhoon Nesat causes heavy damage in S. China
  3. Immigration law discriminates against maids
  4. Fiancee's attempt to break up is deadly
  5. Grassroots Party devote to rural development

PD Online Data

  1. Challenge to the traditional view of love and marriage
  2. House means happiness? Young Chinese' home-owning dream
  3. Fighting AIDS,China is acting
  4. Worldwide Confusius Institutes
  5. Chinese Qingming Festival