China to groom 50 firms for global list

China to groom 50 firms for global list

Agence France Presse, Beijing

China plans to groom 50 companies to become among the world's top
500 multinationals within the next 12 years, state media reported
on Friday.

Officials want to achieve this ambitious objective via a "go-
out" strategy that encourages local companies to invest more
abroad, the China Daily said.

But some state-employed economists think the government is not
doing enough yet to implement this strategy, according to the
paper.

"The government should have a special commission and fund to
tackle this demanding and pressing task," said Lin Yaoqin, an
economist at the Chinese Academy of Social Sciences, the top
think-tank.

"Our overseas investment is urgently in need of promotion
considering it's tiny volume at present," he said.

Last year, Chinese companies invested a tiny US$2.3 billion
abroad, compared with more than $50 billion invested by foreign
companies in China in the same period.

Officials want Chinese companies to start setting up plants
and sales networks abroad so they can gradually develop into true
multinationals with well-known brand names, the paper said.

Makers of electrical household appliances should set up
operations in developing countries, while other companies should
seek technological cooperation with counterparts in developed
economies, the officials said.

Of particular importance is the need for Chinese energy
companies to engage in oil exploration in foreign countries, they
said.

China's oil companies have in fact emerged as some of the
country's most active deal-makers, announcing several high-
profile agreements recently.

Sinopec Group and CNOOC, China's number two and three oil
companies respectively, last month bought large stakes in the
North Caspian Sea Project in Kazakhstan.