Although China’s economy has been growing rapidly, its outbound investment remains low. During a recent video interview recorded at CKGSB’s main campus in Beijing, Professor of Accounting & Finance and Associate Dean of Administration at CKGSB, Liu Jing, spoke to reporter Michelle Xing from the Biz Asia program at CCTV News about the current situation in China’s outbound investment, and suggested Chinese companies should expand globally to attract more business.
“If you look at the champions in industries in China, most of them only do business in China, which include SOEs and private companies like Alibaba and Tencent. In today’s world, if you don’t do business globally, you are going to miss a lot of chances.”
Professor Liu also compared private Chinese companies favorably to their state-owned competitors, saying, “Because of the institutional, or structural, advantages of private companies, I think they can do better deals. The second thing is that when Chinese companies go global, there is always an issue, because if it’s a state-owned company acquiring some assets overseas, oftentimes you face a political backlash.”
Please watch the segment featuring Prof Liu Jing below. To watch the full Biz Asia program on CCTV, please click here.