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Guidelines Approved for Chinese Overseas Investments
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The first guideline policy document for Chinese enterprises investing overseas was approved Wednesday by China's State Council. Entitled "Opinions on Encouraging and Regulating Overseas Investments by Chinese Enterprises" the document was adopted at a meeting chaired by Premier Wen Jiabao.

The document calls for improved supervision of the management of state-owned assets overseas, the establishment of appropriate risk assessment procedures 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 contracts, protect the interests of local employees and the environment and support local charities.

Chinese enterprises should strive to improve the quality of their products and services to boost their international competitive edge, the document states.

In response to growing terrorist threats the document calls for more efforts to be made to protect the safety of employees and the properties of overseas Chinese businesses.

It also urged overseas businesses to safeguard their image as well as that of the country and spread China's policy of peaceful development.

China is recognized as a rising international investor. Its overseas investments surged 123 percent in 2005 to reach US$57.2 billion at year end. That figure is expected to rise by a further 60 billion dollars by 2010.

(China Daily October 26, 2006)

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