Source: CCTV.com

06-05-2008 14:41

Just three decades ago, China was considered an economic backwater. But since then, the country has transformed itself into an economic power, with top listed companies, and a forex reserve that's the envy of everyone.

Flushed with cash and a booming economy, China now faces the tough task of maximizing its economic edge, to the benefit of the country. How to become an effective, and respected global player? What to do with the excess foreign capital?

The answers, lie in this month's BizChina 360. Under the theme of “Overseas Investment”, we explore the various aspects of this strategy, and the challenges they face. In our first installment, we take a brief look at how China is transforming itself from a world manufacturing powerhouse into a global investor, and becoming increasingly active on the world stage, especially after its entry into the World Trade Organization.

This was a day that China had been waiting for 15 years. It was an historic moment in China's reform and opening-up policy, and in its process of modernization. Finally, China had become a full-fledged member of the international trading system.

Since its entry into the WTO, the country's integration into the world economy has become deeper and stronger, with each passing day.

China's overseas investment dates back to the late 1970's. But it was not until recently that the country began making more influential outward investment. The rise was largely a result of the country's growing wealth, the government's relaxation of capital control, as well as increasing confidence of domestic firms.

Many of China's largest firms seem financially poised to take that plunge. Three decades of opening up and reform has transformed the once low-efficient state owned enterprises into vibrant and competitive players not only at home, but also abroad.