Going outbound: What private companies can learn from SOEs
May 10, 2013 | BY
clpstaff &clp articlesSoaring outbound investment is generating excitement and debate across domestic as well as international economic and political spheres. Privately-owned companies have started contributing to this trend, but what can they learn from experienced state-owned enterprises?
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Since the Going Out strategy was announced in 2000, China's outbound investment activities have increased and so too have growth rates over the years. The trend has become even more noticeable in a dismal global economic climate. Official statistics from the Ministry of Commerce (MOFCOM) show that non-financial outbound investment in 2012 amounted to $77.22 billion (28.6% up compared to 2011), involving 4,425 foreign enterprises in 141 jurisdictions.
According to The Economist, top destinations for Chinese outbound investment from 2005 to 2012 were Australia, the US, Canada, Brazil, Britain, Indonesia, Russia and Kazakhstan. Energy, power and minerals were the most attractive industry sectors for Chinese investors, accounting for almost two-thirds of the total number of deals. Resources were followed by a much wider spread of sectors, including financial services, TMT, industrials and chemicals, leisure, consumer, automotive, transportation, pharmaceutical, medical and biotech.