About this Event
18 Jan 2010 @ 12:45Roundtable discussion of the EU-China Group on outward investment by Chinese companies
About the Event:
Mr. Freeman gave a comprehensive overview of the development of outward foreign direct investment by Chinese companies, following China’s success in attracting large volumes of inward foreign direct investment over the last thirty years. This government–accelerated phenomenon was facilitated by China’s “go global” policy, a phrase that was a vital component of China’s more outward-looking policy in the late 1980s and early 1990s.
Outward FDI was facilitated by the reversal of China’s investment policies and the relaxation of restrictions for the approval of investment projects. Mr. Freeman pointed out that lower levels of government and regional government can now approve investment projects. Mr. Freeman cited the example of Chinese PC manufacturer Lenovo’s acquisition of IBM's personal computing division in 2005 in his discussion, an acquisition that made Lenovo the third-largest personal computer company in the world and one of the biggest successes of China’s “go global” policy.
In describing the profile of companies involved in overseas foreign direct investment, the speaker noted that the vast majority of the top 40 investor companies were state-owned enterprises, with few private companies represented on the list. The vast majority of investments are taking place in Asia with a comparatively small percentage making their way into the European Union. Through these investments, Chinese companies stand to gain international experience and competitive advantage in the Chinese market.
For more information and to watch the video of this event, click on this page.
About the Speaker:
Duncan Freeman is a Research Fellow at the Brussels Institute of Contemporary China Studies. His research on China’s economy focuses on trade and investment and he is the author of a number of publications on business in China, including a guide for Chinese companies doing business in Europe.
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