Window opens

The global financial crisis "creates strategically important investment opportunities for Chinese companies", said Long Guoqiang, director of the research department of foreign economic relations at the Development Research Center of the State Council.

"But the window of opportunity may not always be open, and Chinese companies should grasp opportunities," he said.

Kong agreed.

"Chinese investors' business opportunities are better than ever because of China's economic fundamentals, strengthened capabilities and the globalization of Chinese companies," he said.

Of the companies that responded to the survey, 73 percent said their moves overseas had benefited from government support.

In the first quarter of 2012, China's outbound investment into non-financial sectors increased by 94.5 percent from a year earlier, rising to $16.55 billion.

Shen Danyang, spokesman for the Ministry of Commerce, said such investment may continue to increase rapidly this year but probably not by as much as 100 percent in the first quarter.

Besides the government's policy, "countries throughout the world welcome Chinese companies" and "the nation's outbound direct investment will continue to increase quickly", said Wang Shengwen, deputy director-general of the ministry's department of outward investment and economic cooperation.

In developed nations, "we could look at high-tech industries, including those having to do with low-carbon and new energy technologies", Wang said.

In developing nations, he said, opportunities are likely to lie in "infrastructure and manufacturing".

Also of the surveyed companies, 50 percent said they had invested in manufacturing.

As Europe's debt woes spread, the region has taken pains to welcome Chinese investment.

"Chinese investment is really valuable for us (in Germany)," said Uwe Kerkmann, general director of the Office of Economic Development of City of Dusseldorf.

Not only do the Chinese sell products, "but they are also a strategic partner for Germany, transferring technology and know-how to us", he said.

The survey found that more than 70 percent of the interviewees believe the biggest difficulties that arise in conducting business overseas stem from "the search for the right business partner, a lack of brand awareness in foreign markets and cultural differences".

"Chinese companies take on much bigger risks when they operate in Africa rather than in the US and EU," it said.

Then there are political risks and restrictions.

Last year, Chinese business tycoon Huang Nubo offered the equivalent of $8 million in the hope of acquiring a piece of land in Iceland. His plan was to turn the area, which occupies about 0.3 percent of the country's total landmass, into a resort and golf course. The proposal was rejected, though, by the Icelandic Interior Ministry, which said it did not comply with rules governing land ownership.

Huang said "political concerns" are the main obstacles that lie before Chinese companies that try to make acquisitions overseas.

Wang said the greatest difficulties Chinese investors are likely to face will stem from the weak world economy, protectionism, cultural conflicts and political turmoil.

"We will try to improve the rules and regulations, making things more convenient and offering financial support, amending the guidelines in a timely way and promoting investment agreements between China and the rest of the world," Kong said.

Ge Junjie, vice-president of the Shanghai-based food company Bright Food Group Co, said "it's a long-term trend for the Chinese food companies to make forays overseas".

Bright Food has completed two overseas acquisitions so far, buying a controlling stake in the New Zealand-based Synlait Milk Ltd for $58 million in 2010, and agreeing last year to spend $382 million for a 75-percent stake in Manassen Foods Australia Pty Ltd.

Contact the writers at dingqingfen@chinadaily.com.cn and hewei@chinadaily.com.cn