Home / Business / Macro

Chinese invest, global economy gains

By Yu Jia | | Updated: 2013-03-27 17:27

Chinese enterprises have become a powerful engine to maintaining and driving up global economic growth amid the extended recessions as they step up their investments in the overseas market.

Chinese companies power Africa's growth

On top of continuing to provide aid to Africa, China and the continent have reached a win-win situation by carrying out a series of agreements.

Statistics show that Chinese investment in Africa reached $40 billion by the end of 2010, of which $13 billion came as direct investment. Meanwhile, contracts wrapped up in the region were worth $218.9 billion, with a turnover of $132.5 billion.

The mounting investment from China, among other emerging countries, has been powering Africa's economy to an annual growth of 6 percent, bucking the trend of global economic downturn.

Specifically, Africa has benefit from Chinese companies in terms of production, infrastructure, technology and employment.

Chinese companies have implemented localized management in Africa, therefore providing substantial job opportunities. According to statistics, the ratio of African employees to their Chinese counterparts in Chinese companies' projects in Africa has hit 13:1. Take China Civil Engineering Construction Cooperation for example, after 30 years' of operations in Nigeria, the company hired more than 11,170 locals.

Chinese companies bring confidence to Europe

The European economy is mired by the recent debt crisis. However, China's direct investments in Europe have surged as the Sino-European strategic partnership forges ahead.

Chinese companies in Europe contributed to the continent's economic development and employment through their mutually beneficial cooperation.

In 2008, China Ocean Shipping (Group) Co, the country's largest State-owned shipping conglomerate, spent 4.3 billion euros on a 35-year management lease for the No 2 and No 3 piers in Greece's largest port, which is at Piraeus. In 2010, the port broke a run of loss and began to make profit. The port became the busiest port in Greece over the next year, with a throughput of 20 million passengers and 1.7 million standard containers. Also, COSCO has provided more than 800 job positions in Piraeus since the takeover.

Another example of Chinese companies contributing to job opportunities in Europe is Chinese automaker Zhejiang Geely Holding Group's takeover of the Swedish luxury brand, where no one at Volvo's Ghent factory in Belgium was laid off. Rather, Geely provided more jobs for the local communities.

Chinese enterprises in America: Marriage after seven years' dating

China National Offshore Oil Corporation Limited (CNOOC), the country's largest offshore oil producer, announced on Feb 26 that it had completed its takeover of the Canadian oil and gas company Nexen Inc after a seven-year process.

As part of Nexen's assets is located in the Gulf of Mexico, the deal needed to be cleared by regulators in the United States before it could go ahead. In 2005, the US government rejected related transactions, citing “national safety” concerns. The recent approval indicates that the US is adopting a more practical approach as it sees the mutual benefits of the takeover.

In the future, economic globalization will see more and more Chinese enterprises participation. Chinese enterprises, such as builders and cooperators, will debut on a broader stage to explore business opportunities to better develop, while helping China's economy merge with and grow together with the world economy.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349