A day to remember

Last month, I had a wonderful time in Beijing attending our annual China Outbound Summit and hosting the CLP Awards 2010. The JW Marriott venue was impeccable and the events of September 16 were thought-provoking, inspiring and a harbinger of the good things yet to come for Chinese investors.

A common theme across all the outbound sessions was the importance of knowledge (due diligence and thoroughly researching the target or potential partner) and having post-merger integration strategies. In an Economist Intelligence Unit report conducted earlier this year, it found that two-thirds of the PRC companies surveyed intended to invest overseas over the next few years and that they were aware of the challenges of closing a deal and making the investment work after signing. “Chinese companies are aware of the greater challenges that they face when identifying, negotiating, promoting and integrating new ventures into their existing businesses if they are to succeed in the long-term,” said the managing partner of Clifford Chance's Beijing and Shanghai offices, Stephen Harder.

A government report issued at the beginning of September stated that China's outbound investment totaled nearly US$184 billion dollars last year, and that by the end of 2009, Chinese enterprises had established 13,000 overseas companies in 177 countries, with combined assets of over US$1 trillion. China is now the fifth largest investing country worldwide and her prospects of scaling higher on the ladder will grow each year.