Private firms need more risk control overseas: NDRC

China will take measures to guide private companies’ overseas investment, Meng Wei, spokesperson for the National Development and Reform Commission (NDRC), said on Monday.

The guidelines focus on five major aspects, including improving management systems, legal compliance and fulfilling corporate social responsibility, Meng told a regular news conference in Beijing.

Being important players in the strategy of “going global,” private companies should improve their risk control, set up contingency plans, and improve safety measures in overseas investment, Meng noted.

Private companies should also comply with domestic and overseas procedures and engage in fair competition with regard to overseas investment, Meng said, citing the new guidelines.

The central government previously issued similar rules for overseas investment by State firms after surging foreign investment by Chinese companies raised worries of capital outflows and “blind” overseas expansion. The rules, issued in August, put restrictions on overseas investment by Chinese companies in fields including real estate, hotels, cinema chains and sports clubs.

Private enterprises have made a contribution to promoting mutually beneficial cooperation between China and the host countries while transforming and upgrading domestic industries under the Belt and Road initiative, Meng said.

Companies should also be mindful of environmental protection and develop comprehensive strategies and financial management for overseas investment, Meng said.

Meanwhile, China will take six key measures to ensure a stable supply of natural gas for people’s homes, including increasing production, purchasing liquefied natural gas on the spot market and allocating resources from South China to North China, according to a post on the NDRC’s website.