New Measures Introduced to Aid Overseas Expansion
A series of measures is being rolled out by China to provide aid for overseas expansion of firms across industries especially railways and nuclear power. Outbound investment hit US$ 102 billion last year, showing an annual increase of 14 percent. But China’s decade old going out policy primarily aimed to assist State owned firms to establish themselves abroad.
These new measures will also aid construction, steel and equipment making firms in going out by boosting trade and investment deals and by pushing domestic economic restructuring as well. furthermore the government also pledged greater support for firms in issuing stocks and bonds overseas and broaden the use of foreign exchange reserves of US$ 3 trillion to drive growth.
This also promises a reasonable and convenient financing for enterprises along with the use of policy based financial tools that will boost Chinese firms, foster angel investment and venture capital. The new policy might create friction between China and it largest trading partners which saw competition from China in emerging markets. The government also promised to provide subsidies for broadband and software, rent and low cost buildings for businesses.