Investment no threat

China's economy has become increasingly globalized with more and more Chinese companies looking to invest overseas. This has elicited both applause and concern abroad.

China's opening up policy consists of two parts - foreign investment in China, and Chinese investment abroad. This two-way flow has become normal in China's foreign trade, especially after China joined the World Trade Organization in 2001.

In the process, Chinese businesses have become an increasingly bigger part of the international trade family, with both painful and worthwhile growing experiences.

Time magazine notes that Chinese companies have been walking at a brisk pace since going out into the world. They have had to learn how to engage in international trade, and have suffered setbacks and paid the price.

Chinese companies are no different than any other businesses. Overseas investment is normal in the current global free trade system. People abroad should see it neither as a surprise nor a threat.

In an example cited by Tim Harcourt, chief economist of the Australian Trade Commission, cash-rich Japan alarmed the Australians by flooding their country with investments in the 1990s. The Australians relaxed, however, after seeing the advantages that Japanese investments brought, such as increased employment and new products and technology.

The same thing will happen with Chinese investments, Harcourt said. Australians will again realize that their concern is unnecessary and might actually applaud and welcome these investments, he said.

Overseas investments also create opportunities, not only for Chinese companies, but also for the target countries, especially those mired in the financial crisis. Chinese investments can help these countries ease or even resolve their current financial difficulties. These investments can also help those countries enter other markets more smoothly and help increase employment in local communities.

According to a recent Reuters article the boost in China's industrial output in March, along with a record rise in new credit, could signal that the financial crisis may bottom out soon.

In addition to contributing to the world economy, the strategy of Chinese business is also aimed at increasing investments and construction in African nations, especially those that are less developed.

People abroad should look at China's development and globalization with an objective eye and long-term vision.

"China needs to enter the world market for further development," said Japan's Toyo Keizai Weekly. "Though some people talk about the 'China threat,' China still needs to develop."

The Wall Street Journal said the world should welcome China's companies and investment in the same manner as that of other countries. After all, that is the essence of international free trade and competition.

Xinhua

(China Daily 05/04/2009 page2)