UNCTAD chief: Chinese firms need “smart strategy” in overseas investment

%3CP%3E%3CFONT%20face%3DVerdana%3ETo%20sustain%20growth%20and%20move%20up%20the%20value%20chain%20amid%20global%20economic%20uncertainty%2C%20Chinese%20multinationals%20need%20to%20have%20a%20smart%20strategy%20in%20promoting%20overseas%20investment%2C%20Supachai%20Panitchpakdi%2C%20Secretary-General%20of%20the%20United%20Nations%20Conference%20on%20Trade%20and%20Development%20%28UNCTAD%29%20said%20here%20on%20Wednesday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAs%20an%20already%20favorite%20destination%20for%20foreign%20direct%20investment%20%28FDI%29%2C%20China%20is%20%22a%20key%20source%20of%20overseas%20investment%20as%20well%2C%22%20Panitchpakdi%20made%20the%20remarks%20in%20a%20keynote%20speech%20at%20the%202nd%20China%20Overseas%20Investment%20Summit%20%28COIS%29%20at%20the%20Hong%20Kong%20Conference%20and%20Exhibition%20Center%2C%20while%20indicating%20over%20the%20past%20decade%2C%20China%27s%20outward%20investment%20has%20grown%20by%2025%20percent%2C%20outpacing%20the%20increase%20of%206%20percent%20for%20traditional%20investors%20from%20developed%20countries.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22As%20a%20result%20of%20this%20rapid%20expansion%2C%20China%20now%20ranks%209th%20among%20the%20top%2010%20investing%20countries%20globally%20with%20FDI%20outflows%20in%202011%20outstanding%20at%2065%20billion%20U.S.%20dollars%2C%22%20he%20said%2C%20noting%20that%20the%20majority%20of%20them%20went%20to%20developing%20economies%2C%20especially%20those%20in%20Africa%20and%20Asia.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20despite%20Chinese%20firms%20coming%20a%20long%20way%20in%20improving%20their%20competence%20in%20expanding%20global%20presence%2C%20more%20needs%20to%20be%20done.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Chinese%20transnational%20businesses%20should%20move%20up%20the%20value%20chain...%20As%20Chinese%20economy%20becomes%20more%20knowledge%20and%20capital-%20extensive%2C%20there%20may%20be%20advantages%20for%20Chinese%20firms%20to%20relocate%20labor-extensive%20activities%20to%20other%20developing%20countries%2C%20particularly%20African%20nations%2C%20which%2C%20with%20an%20emerging%20population%20and%20a%20large%20market%2C%20could%20prove%20a%20real%20opportunity%20for%20Chinese%20manufacturing%20and%20services%20firms%2C%22%20he%20told%20a%20packed%20hall.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20this%20process%2C%20Chinese%20companies%20should%20seek%20to%20diversify%20their%20focuses%20and%20investments%20in%20Africa%2C%20for%20instance%2C%20extending%20from%20natural%20resources%20and%20construction%20industries%20to%20automobiles%2C%20IT%2C%20electronics%2C%20solar%20power%20sectors%2C%20etc.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22I%20would%20urge%20Chinese%20business%20leaders%20to%20avoid%20mistakes%20made%20in%20the%20past%20by%20some%20multinationals.%20Environmental%20damages%20and%20social%20conflicts%20can%2C%20and%20will%2C%20hamper%20the%20global%20operations%20of%20that%20company%2C%22%20the%20secretary-general%20stressed.%20Therefore%2C%20it%20is%20essential%20for%20Chinese%20businesses%20to%20take%20corporate%20social%20responsibility%20very%20seriously.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Chinese%20firms%20must%20make%20sure%20not%20only%20shareholders%2C%20but%20all%20the%20stakeholders%2C%20must%20be%20positively%20aware%20of%20the%20commitment%20regarding%20environmental%2C%20social%20and%20governance%20issues%2C%22%20he%20said%2C%20adding%20that%20investing%20in%20human%20resources%2C%20instead%20of%20simply%20making%20use%20of%20them%2C%20is%20of%20great%20significance%20to%20enhance%20the%20competitiveness%20and%20sustainability%20of%20transnational%20corporations.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20two-day%20conference%20themed%20%22Global%20Economic%20Transformation%20and%20New%20Approaches%20to%20China%27s%20Overseas%20Investment%22%20was%20opened%20here%20on%20Wednesday.%20More%20than%201%2C200%20government%20officials%2C%20business%20investors%2C%20senior%20managers%20and%20experts%20from%20over%2040%20countries%20and%20regions%20were%20expected%20to%20participate%20in%20the%20high-profile%20meeting.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%201st%20COIS%20was%20held%20in%20the%20city%20on%20Nov.%2015-16%2C%202011.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%28Xinhua%20net%29%3CBR%3E%3C/FONT%3E%3C/P%3E