Chinese firms expanding abroad have increased dramatically in recent years. In 2012, Chinese investments abroad increased by 17.6%, while that of the rest of the world declined. This internationalisation of chinese businesses has the potential to change both the destination countries and China itself.
Chinese companies invest in virtually every country in the world. The US remains the top destination for Chinese investment, although measured continent by continent, Europe receives more than North America.
Traditionally, these investments have been in sectors of energy and natural resources, usually by Chinese State Owned enterprises or SOE's. However, these trends are changing: the proportion of Chinese investments in other industries is increasing, as is the proportion of investments in Chinese companies that are not SOEs. A survey of Chinese companies done by The Economist Intelligence Unit found that 48% of respondents planned to invest abroad for access to a new market, whereas only 26% said they were investing abroad for access to new markets.
This is the second part of our two-part feature on Chinese companies expanding abroad.
So where, and how, are Chinese firms investing abroad? How do experts assess the way that these investments are received in the destination countries?
Ni hao, you're listening to People In the Know bringing you insights into the headlines in China, and around the world, I'm Zheng Chenguang in Beijing.
Nathan Wakelin-King speaks to Dr David Dollar, senior fellow at the Brookings institution in the US, and former head of the World Bank's China office. Nathan met him at a conference on Chinese investment held at Tsinghua University in Beijing, and Arthur Kroeber, founding partner of Gavekal Dragonomics economic research firm, based in Beijing, and editor in chief of the China Economic quarterly.