China sets guidelines for overseas investments
Updated: 2006-10-26 07:04
BEIJING -- China's State Council, or the cabinet, Wednesday approved the
first guideline policy document for Chinese enterprises investing overseas.
The document, titled "Opinions on encouraging and regulating overseas
investments by Chinese enterprises", was adopted at a meeting chaired by Premier
The document says China's overseas investments must follow the principles of
mutual respect, mutual benefit, complementarity and win-win cooperation.
It stresses the need for proper guidance and coordination of firms to prevent
competition among Chinese businesses in order to safeguard national interests.
The document calls for improved supervision of the management of state-owned
assets overseas and the establishment of proper risk assessment and cost
management systems for overseas ventures.
When investing overseas, the document says, Chinese enterprises must observe
local customs and laws, be fair and transparent in dealing with engineering
contracts, protect the interests of local employees and the environment, and
support local charities.
Chinese enterprises must strive to improve the quality of their products and
services to boost their international competitive edge, the document says.
In response to growing terrorist threats, the document calls for more efforts
to protect the safety of employees and the properties of overseas Chinese
It also urged overseas businesses to safeguard their image as well as the
image of the country, and spread China's policy of peaceful development.
China is a rising international investor. Its overseas investments surged 123
percent in 2005 to reach 57.2 billion U.S. dollars at year end. The figure is
expected to rise by a further 60 billion dollars by 2010.