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Chinese enterprises marching overseas become a key boost to world economy

(People's Daily Overseas New Media)    16:32, February 27, 2019

Photo via People's Daily

With growing experience in overseas business operations, Chinese companies are not only marching overseas with their financial and technological muscles, but are serving as a key boost to the world economy.

Last month in January, Chinese domestic investors conducted non-financial investments for 973 international enterprises in 137 countries and regions, totaling $9.19 billion. At the same time, Chinese enterprises implemented 30 cross-border merger projects, with actual gross merchandise volume topping $1.372 billion.

More recently, on Feb. 13, Chinese new energy vehicle manufacturer BYD Group inked a $689 million contract with the local government of Brazil’s Bahia State to build the world’s first cross-sea rail in Salvador, the fourth largest city in Brazil.

The rail transit project, which is expected to stretch for 20 kilometers, must meet a number of stringent technical goals.

“The track will provide the people of El Salvador with a low carbon and convenient and intelligent travel experience. It is also an important step for BYD to promote the revolution in global transportation,” said Li Tie, manager of BYD’s Brazil branch.

In recent years, overseas mergers and acquisitions by Chinese companies have become more and more focused.

In early January, Sinochem International, a subsidiary of Sinochem, successfully conducted an acquisition of special engineering plastics manufacturer Elix Polymers, a European manufacturer of customized ABS and ABS alloy materials for products like automotive, health care, consumer goods, and electronics. The acquisition is believed to help enlarge technology reserves and enrich the industrial chain for Sinochem.

“Today, Chinese companies are paying more attention to the ‘invisible champions’ when they conduct overseas mergers and acquisitions, that is, those companies whose overall reputation is small but are in a leading position in their respective industries and have leading-edge technology advantages,” said Cui Fan, a professor from the University of International Business and Economics.

As more Chinese enterprises continue their efforts, the country’s Ministry of Commerce has said that it will continue to guide and encourage strong corporations with a good reputation to spread overseas so as to realize mutual benefits on the basis of market principles and international principles.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Jiang Jie, Bianji)

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