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Beijing to encourage foreign firms to list in China

(Agencies)
Updated: 2009-07-02 14:02

June Trade Improvement

The country's outbound investment fell in the first half of the year from a year ago, but Chen said he expected overseas investments flows to return to strong growth in the future, without giving any timeline.

China continued to support domestic companies with ambitions to invest overseas, but said many Chinese firms still lacked the experience operating in foreign markets, he said.

Sichuan Tengzhong Heavy Industrial Machinery, a little-known Chinese machinery maker with no experience in the car industry, raised eyebrows in June when it unveiled a tentative plan to take over Hummer from General Motors.

Doubts about whether the deal would get Beijing's approval have been swirling as many believe Tengzhong lacks the experience and expertise to revive money-losing Hummer's operations.

"The Ministry of Commerce's attitude is that it is the company's own business, and we would mainly look at whether you have the ability," said Chen, who emphasized that his ministry had not yet received any application from Tengzhong for the planned acquisition.

While China looked at ways to increase investment flows, the year-on-year decline in exports and imports began to improve in June from previous months, he said, without providing any specific numbers.

Official June trade figures are expected to be released next week.

In April and May, exports and imports both fell more than 20 percent from year-earlier levels.

(For more biz stories, please visit Industries)

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