Sinomach seeks to invest more abroad

"Partnering with companies owning advanced technology in the West provides us with a shortcut and easier access to improve technology," said Xu.

"We have the capital they need, and also, as the Chinese market is a priority for many of our Western counterparts, partnerships can help them expand market share in China."

The Government Work Report of 2011 pointed out that China will encourage enterprises of all types to expand their global presence, facilitate brands and enhance technological competitiveness through mergers and acquisitions in manufacturing, services, infrastructure and energy.

The report this year also said China will adopt a more proactive opening-up policy and improve relevant rules and regulations to provide Chinese firms looking to go abroad with a more favorable environment.

During the past three to four years, more Chinese enterprises have become increasingly aggressive in expanding to the West, and European countries in particular.

In 2011, China's ODI in the European Union surged by 94.1 percent to $4.28 billion.

According to Shi Mingde, Chinese ambassador to Germany, China's ODI in Germany gained by more than 100 percent last year, accounting for 50 percent of its ODI in Europe.

The momentum will be sustained as Chinese companies expand to obtain technology, expand their sales networks and enhance branding, he said.

"But Germany and German companies have many concerns, complaining that China's investment deals hurt local jobs, although such concerns don't make sense," Shi said.

Distrust and investment barriers were also encountered by Sinomach in going abroad. "The problem is that Western countries are more and more alert to China's growing investment and have set restrictions in various forms. They always doubt China's intention. They ask China to create more jobs, but they are unwilling to transfer technology to us," said Xu.