Firms going global have their job cut out

With China's economy entering the "new normal", which requires reducing excess industrial capacity and deleveraging, an increasing number of Chinese enterprises are shifting their focus from domestic to overseas investments in a fresh bid to "go global".

Developed economies like the United States, Germany and Japan, too, have been encouraging their enterprises to expand in overseas markets. After the bursting of the real estate bubble in the 1990s, Japan sought to revive its economy by urging domestic enterprises to enter foreign markets. As a result, by 2015 the country's net overseas assets increased to as high as 340 trillion yen ($3.4 trillion), nearly three-fourths of its GDP.

Now Chinese enterprises are showing an even stronger urge to "go global" in the face of a widespread glut of commodities, waning investment returns, and the fluctuating yuan. Besides, the 2008 global financial crisis has dealt a heavy blow to most economies, prompting them to attract foreign investments to revitalize their manufacturing and economic growth.