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.