New challenges for firms going global

Moreover, Chinese investment still faces harsh political and legal restrictions in foreign markets that range from security reviews and industry access to environmental protection norms and labor rights. Even if some Chinese enterprises get an entry into a foreign market, they could face local political and economic unrest, and even terrorist attacks. The shortage of efficient domestic support in investment approval, foreign exchange and risk management is also to blame for the situation.

Therefore, to help more Chinese enterprises "go global" and, more importantly, to maintain their foothold, joint efforts from all sides are needed. To begin with, the government should push for institutional innovation and reform to forge a supportive risk management system in which foreign investment is better secured and promoted.

The Minister of Commerce, on its part, should participate in bilateral and regional investing negotiations, as well as in discussions on emerging global investment rules. In particular, the "go global" policy should work in tandem with the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, and make full use of the economic cooperative zones near and across China's borders.

There is need for China to seek greater cooperation with other countries in strategic projects that involve infrastructure construction and energy development. More importantly, smart economic and cultural diplomacy, along with more people-to-people exchanges could strike the right balance between China's exports, foreign aid, overseas investments and use of inward investment from other economies.

The author is an associate researcher at Chinese Academy of International Trade and Economic Cooperation in Beijing.