Commentary: No need to fret about Chinese "going-out"

By Mo Huaying, Fei Liena

BEIJING, April 22 (Xinhua) -- As China's reform and opening-up deepens, an
increasing number of Chinese companies have started to leave their native land
in search of international expansion.

This "going-out" trend has caught the attention of many people in other
countries. Some of those people react with applause, others with concern and
worry.

As a Fujitsu Laboratories researcher recently said, China's opening-up
policy consists of two parts _ inviting-in" and "going-out." The two-way flow
has become normal in China's foreign trade, especially after China joined the
World Trade Organization in 2001.

Now that China's market is opening wider, its economy is becoming more
globalized.

In the process of "going out," Chinese enterprises have become an
increasingly larger member of the international trade family, inevitably with
both painful and worthwhile growing experiences.

Chinese enterprises have been walking at a brisk pace since going out into
the world, as Time magazine has noted. Like other companies expanding overseas,
the Chinese have suffered setbacks and paid prices. However, they have also have
learned how to participate in international trade.

Chinese companies are just like foreign businesses. Their "going-out"
moves, or what we call overseas expansion, are normal in the current global free
trade system. It's neither a "surprise" nor a "threat."

Tim Harcourt, chief economist of the Australian Trade Commission, gives an
example.

In the 1990s, cash-rich Japan flooded Australia with investments, causing
worry and concern in the country. The Australians relaxed, however, after seeing
the advantages, such as increased employment and new products and technology,
that the Japanese investments brought.

The same thing will happen with Chinese investments, Harcourt said. He said
that after several years, Australians will again realize that their concern is
unnecessary. Instead, he said, they might actually applaud and welcome the
investments.

Hand in hand with the going out are opportunities, not only for the Chinese
companies, but also for the target countries, especially those with businesses
mired in the economic quicksand of the financial crisis.

Chinese investments can help those countries ease or even rid themselves of
their current financial difficulties. The investments can also help the products
from those countries enter other markets more smoothly and help local
communities increase employment.

A Reuters article recently pointed out that a boost last month in China's
industrial output, along with a record rise in new lending, gives credence to
the idea that the bottom of the financial crisis may not be far off.

"It does seem that confidence is slowly growing among investors that the
worst may be over for the global economy," said Hideyuki Ishiguro, an executive
with Okasan Securities in Japan.

In addition to supporting the world economy, the "going-out" strategy of
Chinese companies also aims to increase investments and construction in African
nations, especially those less developed.

To see the "going-out" policy with a cool head means people abroad should
look at China's development and globalization with an objective and long-term
vision.

"China needs to enter the world market for further development," said
Japan's Toyo Keizai Weekly. "Though some people talk about 'China threat,' China
still needs to develop."

The Wall Street Journal also pointed out that the world should welcome
China's companies and investment in the same manner as that from other
countries. After all, that is the essence of international free trade and
competition.