Difficult financing, the bottleneck of investment abroad

According to Chinese Trade Promotion Committee,  the overseas investment is presently in the state of  a small scale, as most of the firms, say 61 percent, are lower the value of 100 million yuan, only a few of ten from them could be called the biggest with million times higher. The recipients are mainly European countries like France, Germany, U.K. and Italia, beside America, the biggest receiver of China’s loans. More over, Vietnam has become the most remarkable gainer in two years attracting funds from China.

In resent year, the country accompanied by the related department has put forward so many favorite policies to promote domestic firms going abroad for further development, supplying them convenient conditions like simplified approval procedures and finance support, which is badly needed by the enterprises in 39 percent of the total.

As more and more firms going abroad for investment, difficult financing has becomes the bottleneck curbing the expansion in this field, especially from the start of the global financial crisis when trade protectionism prevailing by and by. Some of the firms believe the crisis would lower the cost of products that might provide with Chinese firms more opportunities in merger and acquisition of foreign entity, anyhow where to get financial aid, especially from foreign bankers.

Nowadays, manufactures are the major sectors in foreign investment, covering textile and machinery producers, most of them are running branch office abroad other than economic entity. Asia has concentrated considerable large investors and will attract more in the coming years. For instance, Vietnam will be certainly the attractor of China’s investment for its great achievements in rapid economic reform. Meanwhile Africa could be the next stage for Chinese investors.