People’s Daily published an article which listed six mistakes that State Owned Enterprises (SOEs) made when they invested in overseas markets, resulting in huge financial losses. In the article, each mistake was supported by examples. The article stated that Chinese enterprises have a huge potential in the overseas market but they should also be cautious and need to learn the lessons from their past mistakes. The six types of mistakes are as follows: 1) The foreign government called off the contract due to a change in the political environment. 2) The bid price was too low and the actual expenditures came in much higher. 3) They didn’t take environmental issues seriously. 4) They lacked understanding of the local culture and customs. 5) They underestimated the power of the local union. 6) They rushed into certain decisions.
Source: People’s Daily, October 18, 2015