Knowledge is power for Chinese companies's overseas investment

The differences did not arise because Zhongrong was from China. Property experts noted that similar problems arose when a wave of Japanese companies initially invested in the United Kingdom.

The way to avoid these problems is to do what a European company would do. As newcomers to the European property market, Chinese companies need more experience in negotiating with local institutions, making use of local advice and ensuring that investment is conducted in a transparent way.

In another case, Chinese commercial developer Advanced Business Park's project in London's Royal Albert Dock experienced difficulties. Its relationship with a local promotion agency was questioned and investigated by British media last year. But ABP stressed that it went through a transparent tender process.

Being scrutinized is normal when a foreign company first enters a market anywhere.

A full understanding of the European market includes knowledge of the local media, especially British media organizations, which have global influence.

Chinese companies always need to prepare a media plan and get proper counsel, even if they think their investment will be positive for the local economy.

Property developers from the Chinese mainland, including Dalian Wanda Group Co, are moving to globalize their portfolios to ensure long-term returns as the domestic property market cools.

Chinese companies' investment in Europe will continue and perhaps even rise. But no matter how many Chinese companies are involved, and regardless of where they invest, they need to understand the market and make proper preparations.