Go Global

Go Global (Simplified Chinese: 走出去) is People's Republic of China's current strategy to encourage its enterprises to invest overseas.

Most nations favour actively attracting inward foreign investment, and would only support outward foreign investment passively.The People's Republic of China, however, attaches importance to both inward and outward foreign investment. And its strategy for emphasising outward foreign investment is known as "Go Global".

There are three reasons to justify that emphasis:

* The People's Republic of China has amassed huge amounts of foreign reserves, thus putting upward pressure on the foreign exchange rate of renminbi, the Chinese currency. Indeed, there have been much demand from the international community for the PRC to float its currency. In order to deflate that demand, the PRC therefore actively seeks to employ its foreign reserves by acquiring assets overseas.

* The PRC is opening up the domestic market in mainland China as a result of its open door policy, which is further accelerated by its commitments when entering the World Trade Organization. Therefore, the PRC can foresee that world class competitors are now competing for business in the Chinese market, and so the PRC is seeking to equip the domestic firms and their management with international experience so that they can take the competition to the home markets of the foreign nations and so that they can compete better at mainland China's own domestic market.

* It is a matter of national pride that the PRC should have world class enterprises.

See also

* Economy of China

External links

* [http://www.ndrc.gov.cn/ National Development and Reform Commission]
* [http://www.mofcom.gov.cn/ Ministry of Commerce]
* [http://www.chinathetimes.com/forum/index.php?topic=968.0 This Time, China Is Different] by Chinese economist Chen Jing