Open stance on investments urged

▶ Analysts concerned over possible US alliance targeting Chinese companies

Some countries should stay open-minded and provide an open, transparent and convenient business climate for investors, including those from China, a Ministry of Commerce (MOFCOM) official urged on Tuesday.

The official said that additional scrutiny of Chinese companies by some countries in the name of national security has had negative effects on the companies’ investments abroad.

Despite this increasing pressure, Vice Commerce Minister Qian Keming urged more competitive and creditworthy Chinese enterprises, to continue to invest abroad.

“Based on market principles and international conventions, Chinese companies should continue foreign investment cooperation, develop and grow stronger. They should meanwhile create more jobs and revenue for host countries in order to achieve mutual benefits and win-win results,” Qian said.

Amid a global downturn of transnational investment, which fell 19 percent in 2018, China’s foreign investment rose 4.2 percent to $129.8 billion, according to the MOFCOM.

However, a growing number of foreign countries and regions have been on guard against Chinese investments. For instance, German state bank KfW agreed to take a 20 percent stake in high-voltage energy network operator 50Hertz, fending off an offer from the State Grid Corp of China again, Reuters reported in July 2018.

Due to US suspicions over the world’s biggest telecoms gear maker, Huawei Technologies, many of its allies have shown growing vigilance toward the company, analysts said.

“If the US hadn’t stepped in, many other countries would welcome Huawei to develop their local 5G technology sectors due to its attractive prices and quality. There shouldn’t be too much wariness of the company,” Bai Ming, deputy director of the MOFCOM’s International Market Research Institute, told the Global Times on Tuesday.

“A pressing concern for China is an alliance established by the US to target Chinese companies’

overseas investments,” said Song Guoyou, director of Fudan University’s Center for Economic Diplomacy.

“Chinese companies should not lose sight of the bottom line for ‘going out’,” according to Bai.