Ins and outs

Looking outward, the news is positive. Chinese investors are being encouraged to set their compasses for far-flung destinations and it seems they are heeding the advice of government. In Outbound in full sail, we report that, according to the Ministry of Commerce, Chinese investors made direct investments in 2,163 overseas enterprises in 116 territories in the first half of 2012. Total non-financial direct investment overseas amounted to US$35.42 billion, a year-on-year rise of 48.2%.

Not surprisingly, mining and energy is the top sector for investment, and despite some uncertainty the US is once again catching the eyes of investors, along with Canada and Brazil. But apart from energy, law firms are seeing some opportunism, with Chinese investors looking to diversify and not afraid to dabble in auto or aviation parts, even branded consumer products. Europe beckons, of course, but beware the risks as the outlook for the euro zone is uncertain.

Still, smart money is showing on everything from British trains to Romanian solar power and Latvian publishing, and still newer markets are beckoning. Unfortunately, however, barriers remain for the likes of private domestic investors.