Chinese enterprises go overseas

As China's economy grows, more Chinese enterprises are extending their businesses overseas. What challenges and opportunities will these Chinese company face in the process? Let's hear some voices from the ongoing Davos Forum.

David Appia, Chairman & CEO of Invest in France Agency, said, "We are happy to have more than 100 Chinese enterprises."

China used to be major destination for foreign investment in the 1980s. But now the country itself is becoming an important investor in the world. The change in direction of capital flow suggests the country's economic development.

Feng Jun, Chairman of Huaqi Info. Digital Sci. & Tech, said, The whole world is looking at China, eager to know more about it. Our Chinese enterprises should take this opportunity to go abroad.

Chinese companies not only export products and services overseas, but have begun to launch mergers and acquisitions within foreign markets. Reuters reported that the 2009 M&A amount by Chinese enterprises in the international market surpassed 42 billion US dollars. Although it was less than the previous year, the amount accounted for nearly 8 percent of the global M&A total in 2009.

Overseas M&A will not only expand the production ability of Chinese enterprises, but could also bring them the latest technology and highly-trained personnel.

However challenges exist together with opportunities. An Indian counterpart suggests that Chinese enterprises should focus on two aspects.

The World Economic Forum provides a platform for enterprises to exchange experience and share wisdom.