he Chinese Government recently published the nation's first industry-based guideline to help Chinese firms make better choices when they invest in overseas markets.
The guideline, in the form of catalogues, was jointly published by the commerce and foreign affairs ministries.
Covering 67 nations and a wide variety of industries, it offers suggestions to domestic firms in the selection of investment destinations and industries. Among them, agriculture, mining, manufacturing and service sectors are highlighted.
"The guideline is conducive to optimizing the industrial layout of Chinese investments in the world and preventing them from investing blindly and from unhealthy competition among Chinese firms," a Ministry of Commerce official said.
The guideline, which is expected to be updated according to global market changes, will also be a reference for local governments in judging whether an overseas project deserves support, the official added.
Analysts say it is important to encourage Chinese firms to increase outward investment against the backdrops of globalization and market integration.
"They (Chinese firms) should enlarge their vision instead of only focusing the local market, and allocate resources on a global basis," said Fan Ying, a professor at China Foreign Affairs University.
"If they choose the right investment destination and industry, their costs will be greatly reduced with profit rises," she added.
Fan also suggests that going global could help Chinese makers dodge an increasing number of trade barriers.
For example, textile and television makers may establish plants outside China and resume exporting goods to countries that impose anti-dumping or safeguards measures on China.
Companies say the government advice is helpful in providing an overall picture of outward investments.
Lu Deguo, general manager of a Shandong-based private porcelain ware maker, said he has the intention of running a manufacturing plant outside China, but was hesitating about the location.
The guideline, which he terms "timely," might give him some useful reference, he said.
However, experts and companies expected that more government efforts will be made in the future to promote the going global campaign.
Zhao Deyuan, assistant to the president of China Minerals and Metals Group (China Minmetals), said new taxation policies should be introduced to encourage Chinese mining firms to tap into the international market.
Also, fiscal and insurance support should be given to them to widen their financing channels, he added.
China Minmetals is China's largest metal trader and is striving for a larger overseas presence.
An early-warning system that is able to deal with emergencies should also be set up to serve companies seeking to invest overseas.
Some Chinese enterprises, such as PetroChina, Sinopec, home-appliance maker Haier and energy giant Huaneng Group, have set up joint ventures or acquired shareholdings in many countries, including the United States, Australia, the Philippines, Malaysia and Indonesia.
