From: China Daily, 11/21/2015
Chinese private companies have become a main force in going global over the past two years. In 2014, private companies' outbound investments saw a year-on-year growth of 295 percent.
In the ongoing the 2nd Meeting of The China Outbound Forum, the 2015 Report on Chinese Enterprise Globalization published by the Beijing-based Center for China and Globalization (CCG) notes private companies accounted for 69 percent of the total number of outbound investments last year.
Wang Huiyao, director of the CCG, says there are mainly two reasons for this. One is the growing strength of Chinese private companies in the past few years, and two is the slowdown of Stated-owned companies going global, which are mainly caused by anti-corruption and overseas assets investigating them.
Cui Mingmo, president of the Chinese Association of International Economic Cooperation of China, says this year private companies' outbound investment increased by about 180 percent in revenue.
He says when Chinese companies go global; they are very active in acquisition and merger.
"In 2014 there were more than 300 overseas mergers that involved more than 50 countries and regions with a trade volume of $2.01 billion," says Cui.
The 2nd Meeting of The China Outbound Forum in Sanya, Hainan province is hosted by the Center for China and Globalization and runs from Nov 20 to 22. It's attracted more than 300 enterprises from all over the world. The forum demonstrates the latest trends of Chinese companies' going global and looks into the challenges and potentials of future development.
Long Yongtu, former vice-minister of Commerce and former secretary general of the Boao Forum, says the Belt and Road Initiative has also encouraged Chinese companies to go global.
Last year, Chinese companies invested in more projects in 'One Belt, One Road' areas, with 407 investments ranging in size from $100 million to $1 billion, and 121 investments that targeting the $1 billion to $ 10 billion mark.