China has become a big exporter of capital. Private enterprise's share of foreign investment increased 3.5 times, to 45 percent in 2013 compared with 14 percent in 2008.

China has invested in 184 countries and regions. The investment from its private sector is gaining weight. Alibaba launched its IPO on the New York Stock Exchange. Fosun group has invested 5.2 billion US dollars. China's private sector has burgeoned since reform and opening-up. As China’s economy plays an increasing role in the world, the private sector has enjoyed many opportunities to ‘go global’. According to statistics from PricewaterhousCooper (PwC), the value of the private sector’s mergers and acquisitions rose 218 percent in the first half of 2014 compared with the second half of 2013.

Some experts observe that private companies have advantages such as clear property rights and flexible decision-making in terms of foreign investment. Compared with state-own enterprises, the overseas investment of the private sector is more diversified. Private business pays more attention to improving technology and promoting its brands in foreign markets.

State-own enterprises and private ones are very different in ownership structure. According to a report from the United Nations, China should set up new foreign investment strategies, integrate international resources, and set up an integrated production system. Some experts suggest that state-owned and private enterprises should work together to achieve win-win results. The private sector has done well from its overseas investments, while state-owned companies have underlying financial muscle. It should be feasible for both to work together to generate maximum benefits.

This article was edited and translated from 《民企对外投资快速赶超国企》, source: People's Daily Overseas Edition, Author:Luo Lan