Skip to content

Potential Security Issue with Chinese Foreign Assets

A recent Xinhua article discussed the security of China’s foreign assets. With the Chinese government’s “Going Out” strategy, many Chinese companies’ sped up their international investment process, resulting in large overseas assets. By the end of 2009, the total amount exceeded 4 trillion yuan. The recent Libyan situation highlighted the issue of the security of these assets. Although the workers returned home, the investment and assets there remain unprotected. Experts suggest that international investments involve two types of risks. One is market risks, such as price changes; the other is non-market related, such as government regulations and terrorist attacks. Many Chinese companies “rushed out” without proper preparation, such as insurance. The article called for improved risk management.

Source: Xinhua, May 21, 2011