Survey on Current Conditions of and Intention for Outbound Investment by Chinese Enterprises （Part Ⅱ）

Executive Summary
After two preliminary trials in 2005 and 2006, China Council for the Promotion of International Trade （CCPIT） conducted the ＂Survey on Current Conditions of and Intention for Outbound Investment by Chinese Enterprises＂ from December of 2008 to February of 2009. We standardized the samples and enlarged the scale to present an in-depth landscape of the current conditions of and intention for outbound investment by Chinese enterprises as China adopts the ＂Going Global＂ strategy to encourage outbound investment, and the development of outbound investment by comparing the results of this survey and the previous two surveys.     

Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises

In order to collect more precise information about the overseas investments made by Chinese enterprises in 2009 and their future investment plans, China CounciL for the Promotion of International Trade （CCPIT） has carried out the fourth ＂Survey on Current Conditions of and Intention for Outbound investment by Chinese Enterprises＂ between December 2009 and March 2010. The objective of the survey is to collect in-depth information about the intentions and problems concerning the overseas investments of Chi- nese enterprises,     

Foreign Investors Complaints Promote Improvements in Investment Environment

Recently, reports and comments on problems in Chinese investment environment by overseas media raised attentions and concerns. Financial Times of UK carried out a survey on March 23 under the title ＂Foreign Enterprises in China Having More Complaints＂, which said ＂Chinese governments excludes foreign-funded enterprises from some vigorous developing markets, which has already caused transnational corporations to complain more, especially on the implementation of protectionism actions in China.＂ At the end of July, Wall Street Journal reviewed complaints from foreign merchants in recent months on investment environment in China,     

Break the Iceof “Financing Difficulty”

141ccording to “Survey on Current Conditions of and Intentions for Outbound Investment by Chinese Enterprises (2008-2010)” officially released by the China Council for the Promotion of International Trade (CCPIT),over 60％ of respondent enterprises believe the “determining factor” or “crucial factor” restricting their outbound investment is financing difficulty and shortage of international trade management talents.Most of these enterprises are small and medium sized enterprises (SMEs) with no more than 5 million outhound investment.     

Canada： An Ideal Place for Outbound Investment

In recent years, bilateral investment between China and Canada has become more and more active. According to the report on overseas investment ot Chinese enterprises released by China Council for the Promotion of International Trade （CCPIT） at the 4th Chinese Enterprise Outbound Investment Conference,     

Canada: An Ideal Place for Outbound Investment

In recent years, bilateral investment between China and Canada has become more and more active. According to the report on overseas investment of Chinese enterprises released by China Council for the Promotion of International Trade (CCPIT)at the 4th Chinese Enterprise Outbound Investment Conference, Chinese overseas investment is displayingan increasing trend, with the strength of Chinese enterprises and overseas investment rapidly growing.     

Survey on Chinese Enterprises' Outbound Investment and Operation (I)

The year of 2011 marked the beginning of China s 12th Five-Year Plan period,and also the 20th year of the country's implementation of its “going global” strategy.In the past decade,Chinese enterprises' outbound investment has witnessed the gradual transition from rapid growth to steady growth and from quantity based growth to qualitative based improvement.In 2011,against the backdrop of increasing turmoil in the global political and economic environment,the ongoing deepening of the European debt crisis,and an increasing complex international investment climate,Chinese enterprises' outbound investment maintained a stable growth momentum.Domestic investors made non-financial outbound direct investment in 3391 overseas enterprises in 132 countries and regions around the world,and the cumulative direct investment amounted to US$60.07 billion,up 1.8％ Y/Y.Going into 2012,domestic enterprises are actively more involved in overseas investment.In January and February,domestic investors made US$7.435 billion of non-financial outbound direct investment in 706 overseas in 97 countries and regions around the world,up 59.9％ y/y.     

IBF Launched in China

The India Business Forum （IBF）organized by the Confederation of Indian Industry （CⅡ） and the Indian Embassy to China was officially launched in Beijing, on April 16, 2009. With the theme of “Impact of Global Economic Crisis： Challenges and Opportunities for India and China”, IBF （China） was launched to provide a lobby to promote bilateral trade and economic cooperation between the two countries. The forum also focused on the successful stories of Indian companies in China and Chinese companies in India, as well as investment opportunities for Chinese companies in India.     

Capital Power： From Input to Output

After thirty yeas ＂going out＂ of China overseas investment, we learn from our failed lessons and also successful experience. Chinese enterprises are now standing at a new starting point of ＂going out＂. China is transforming from .＂capital input power＂ to ＂capital output power＂. With the approval of the National Development and Reform Commission of ER.C., the first China Overseas Investment Fair hosted by China Industrial Overseas Development ＆ Planning Association was convened on November 3rd-4th in China World Trade Center, Beijing. With forceful and orderly preparation since the beginning of 2009, ＂COI Fair＂ aims at providing professional service for Chinese enterprises overseas investment, in forms of both exhibitions and forums.     

Survey on Current Conditions of and Intention for Outbound Investment by Chinese Emerprises （Part III）

After two preliminary trials in 2005 and 2006, China Council for the Promotion of International Trade （CCPIT） con-ucted the ＂Survey on Current Conditions of and Intention for Outbound Investment by Chinese Enterprises＂ from December of 2008 to February of 2009.     

Tax Policies： Important for Outbound Investment

Implementing ＂going out＂ strategy is a new stage of China＇s reform and opening up. To encourage and facilitate outbound investment of Chinese enterprises can not only be of great importance in making full use of international and domestic resources and market to help expand national economy,     

Ready to Embrace Chinese Investors？

A good friend of China,who from ASEAN countries,once said that＂The biggest difference of China between her past and present is that China is rich now with large foreign exchange reserves in the bags＂Yes,the Chinese government is encouraging his enterprises to go abroad by various means.Facilitating Chinese enterprises to invest globally is in accordance with China＇s present Go Global Strategy exactly.And The 2nd Chinese Enterprises Outbound Investment Conference （CEOIC）, co-hosted by China Council for the Promotion of International Trade （CCPIT） and Ministry of Commerce of China is a good example to that.     

Encouraged Projects for Foreign Investment in China

According to official statistics, the population of foreign residents in China amounted to above 320 thousand by the end of last year. Most of them are working for institutions and enterprises in China. They are an undividable part of Chinas growing economy. To better promote business exchange between China and the world, and to better serve those foreign friends in China who contribute for China＇s international exchange, China＇s Foreign Trade opens this special ＂Foreigner＇s Guidance＂ column, supplying useful information for foreign readers mainly on investment and trade in China. Each issue of the Magazine will focus on different aspect, from where business and life could be easier to start. We offer more than guidance!     

Invest In Karnataka

The bilateral trade between India and China has crossed US$ 51 billion in 2008. China has become India s largest trading partner and there is still a lot of scope for promoting bilateral trade between two countries. Aiming at promoting the Global lnvertors Meet to be held in Bangalore on 11 - 12 January, 2010, ＂Invest in Karnataka- Global Investors meet 2010＂ was held on September 3, 2009. Mr. Yu Ping, vice president of CCPIPT, Mr. Subramanyarn Jaishankar, the ambassador of India to PRC, the Hon＇ble Chief Minister of Karnataka with the delegation from Hon＇ble and around 100 Chinese enterprises attended this seminar.     

Japan Image Mirro

Asmall-scale survey was deducted recently by China＇s Foreign Trade and showed that Chinese urbanites are changing their attitudes toward Japan and many of them are viewing their Asian neighbor more positively. On the topic of ＂Japan linage＂, we interviewed over 50 young white collars from China. Most of them have been to Japan or working for Japanese enterprises in China. Based on their interests and knowledge to Japan, we paint an international picture to this economic giant by inflection from the thought mirror in minds.     

China＇s Approval Regime on Outbound Investment-Overview on the First Chinese Judgment Recognized and Enforced by the United States Courts

On February 26, 2010, the Ministry of Commerce of China （＂MOFCOM＂） issued the Guiding Opinions on 2010 Outbound Investment and Cooperation indicating that non-financial outbound direct investment amount increased by 6.5% from US$40.7 billion in 2008 to US$43.3 billion in 2009.     

Tough ＆ Long＂Going-Out＂ Road -- Review on the Internationalization of China＇s Auto Industry

In 2008, the momentum of the outward investment of Chinese enterprises was strong. The amount of outward investment continued to grow rapidly, and has for the first .time exceeded USS50 billion, reaching USS55.91 billion. China＇s automobile industry has undergone decades of development and has formed a huge production capacity, with part of its pioneering enterprises having conducted a number of useful attempts in internationalization. The once-in-a-century financial crisis influenced various industries in every country. Nevertheless, China＇s auto enterprises are facing a rare opportunity in outward investing. Enterprises need to achieve their own technological upgrading with the ＂going global＂ strategy in order to maintain long-term stability and sustainable development.     

Investing in Japan？ Statistics Speak

Is investing in Japan a good choice for ambitious Chinese enterprises？ Xiong Lin, partner at the Beijing DaDi Law firm, reminded potential investors that understanding Sino-Japan cultural differences, local policies and the procedures concerning investment, as well as protecting intellectual property and prompt communication with local consulting firms are the keys to good preparation. She gave this advice at the ＂2009 Investment in Japan Seminar＂ on March 5, a seminar co-hosted by CCPIT （China Council for the promotion of International Trade） and JETRO （Japan External Trade Organization） as the follow-up to a session held in 2007.     

Conclusion of Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises

Despite the challenging economic environment, Chinese overseas investment continued to grow in 2009.According to the data published by the Ministry of Commerce,outbound foreign direct investment (FDI) by Chinese enterprises amounted to 43.3 billion in 2009, a year-onyear increase of 6.5%. This growth occurred against the backdrop of a decline in global foreign direct investment by 30% ～40% compared to 2008.     

Chinese Opportunity for Outhound Investment？

Global economic crisis shrinks the world wealth,as well as the enterprises value.Many companies in foreign lands are facing a tough time China,with the world No.1 foreign exchange reserve, US$1953.74 billion up to March,2009,according to State Administration of Foreign Exchange of China,is claimed to possess strong outbound investment capacity in the crisis.