The Center for China & Globalization launched its second annual bluebook report on the Globalization of Chinese Enterprises on Nov. 9, 2015, in Beijing. The book, published by the Social Science Academic Press (China), reviews he current situation, trends, and challenges in the globalization of Chinese enterprises based on extensive data analysis and case studies. It also provides policy recommendations in key areas, including the connections between enterprise globalization and the Chinese financial system, global talent, and think tank development.
Based on CCG’s own data and publicly-available information, the new Blue Book Report puts forward several ranking lists of Chinese enterprises going global. Two of these lists rank the “Top 50 Chinese companies going global” and the “Top 50 e emerging Chinese Companies Going Global.” The firms in these lists are meant to serve as role models for other Chinese businesses undertaking outbound investment and global expansion.
Yang Qun, editor in chief of the Social Science Academic Press
Wang Huiyao, President of CCG
Frances Sun, Vice President of CCG
Cui Mingmo, China Association of International Economic Cooperation (CAFIEC) president
Mabel Miao Lu, Executive Secretary-General of CCG
Mei Xinyu, research fellow of International Trade and Economic Corporation Research Institute
Lu Jinyong, Professor of International Business and Economics
Prof. Liu Yipeng, School of Business, Birmingham University, UK
Dr. Wang Huiyao, CCG’s President and the leading author of the book, joined Yang Qun, the editor in chief of the Social Science Academic Press (China), to present the book at the launching ceremony. Their presentation was followed by the release of the ranking lists by CCG’s Vice President Frances Sun. Moderated by CCG’s Executive Secretary-General Dr. Mabel Miao Lu, the event also featured as guests the following prominent scholars and experts:
Cui Mingmo, China Association of International Economic Cooperation (CAFIEC) president;
Prof. Lu Jinyong, School of International Economics and Trade at the University of International Business and Economics;
Mei Xinyu, research fellow, the International Trade and Economic Corporation Research Institute affiliated with the Ministry of Commerce;
Prof. Lu Jinyong, University of International Business and Economics
Prof. Liu Yipeng, School of Business, Birmingham University, UK
Since 2014, the Chinese government has accelerated reform of the outbound investment management system to complete the transition from pre-approval to post-registration. That measure has expedited China’s investment abroad and encouraged more companies to go global. This trend will gain further momentum as China pushes forward its “One Belt, One Road” strategy that will provide better connectivity with the world and more international cooperation platforms for Chinese companies. In 2014, China was not only become the most popular destination for foreign investment, but also became, for the first time in its history, a net capital exporter.
Against this backdrop, the Bluebook Report on the Globalization of Chinese Enterprises was drafted to summarize the key features of China’s outbound investment between 2014 and 2015. These features include how privately-owned companies are taking a leading role in outbound investment, the middling to small-scale nature of Chinese overseas investment projects, and diversification of the destinations to which it is flowing. In addition, the report provides recommendations on how to address some prominent challenges in outbound investment, such as the lack of promotional efforts and inadequate risk management and information services. Some highlights of the report are as followed:
Chinese companies are expanding their investment in the countries along the One Belt, One Road. They are being encouraged to launch pilot projects that are conducive to implementing the strategy.
Privately-owned companies are taking a role in China’s outbound investment and climbing up the global value chain.
Chinese companies’ foreign merger and acquisition activity continues to be marked by strong momentum, and their investment models are becoming increasingly diversified.
The outbound investment of small and medium-sized Chinese companies is increasing significantly.
The outbound investment of Chinese manufacturing industry is growing rapidly, with the United States serving as the top destination for such investment.
Going global as a group has become a new strategy of Chinese companies’ outbound investment.
Chinese investment in TMT industry continues to grow and the United States remains the No.1 destination for such overseas investment.
Rapid growth is also seen in Chinese investment in foreign real estate and real estate companies. Science and technology companies have chalked up a strong overseas investment performance record.
One of the key indicators to evaluate the impact of Chinese companies’ CSR programs abroad is the approval by all local stakeholders.
Security risk is ranked No.1 among the top 10 risks for China’s outbound investment, and intelligence regarding such risks for Chinese firms needs to be upgraded to safeguard their activities abroad.
CCG proposes 15 recommendations for the globalization of Chinese enterprises
Long Yongtu, Chairman of the CCG Strategic Council and former Chief Negotiator of China's WTO accession, said in the preface he wrote for the book that Chinese companies will accelerate their global expansion in the next several years due to three factors: 1. Continued growth in national economy and its global competitiveness; 2. Implementation of the “One Belt, One Road” strategy; and 3. Growing global economy and rising market demand.
According to Dr. Wang Huiyao, China’s accession to WTO has brought the country a 15 year “opening-up bonus” and made it possible for the country to become a capital exporter. As outbound investors, Chinese companies are able to integrate resources from all over the world using global perspectives. Once they can climb up to the higher end of global value chain, it will enhance the restructuring and upgrading of industry in China, improve the country’s “soft power” and strengthen its international competitiveness and influence. He hopes that the ongoing research of CCG on this subject can further expedite Chinese companies going global and help more of them become competitive global enterprises.
The book was released as CCG is prepared for its second China Outbound Investment Forum, which will took place between Nov. 20 and 22 in Sanya, Hainan province. This annual event examined fresh strategies for the globalization of Chinese enterprises, new market opportunities, and emerging challenges and issues. Over 300 people, including Chinese government officials, foreign diplomats, domestic and international scholars, and business executives, participated in the forum. The event also presented awards to the companies on the ranking lists and discussed the key findings of the bluebook report on the Globalization of Chinese Enterprises.
Since CCG released the first bluebook report on the Globalization of Chinese Enterprises in 2014, it has become widely-acknowledged as one of the best study reports in this field. As a leading independent think tank in China, CCG was established in 2008 and currently employs over 80 full-time staff around the world. CCG publishes around 10 Bluebook reports every year, including the study reports on Chinese studying abroad, Chinese returnees, international migration, overseas Chinese professionals, and globalization of Chinese companies.