Firms going global to get quick support

China is optimizing the framework for helping companies go abroad, shifting toward a more sophisticated, service-oriented support system aimed at facilitating their high-quality overseas expansion and enhancing global supply chain stability, officials said.

The updated framework was outlined by the Investment Promotion Agency of the Ministry of Commerce on Monday, as the agency moves to professionalize the support mechanisms for enterprises going global, placing greater emphasis on resilience, compliance, and industrial integration rather than simple scale expansion.

The shift comes as China's outbound direct investment has seen a steady rise. According to data from the Ministry of Commerce, China's total outbound direct investment increased 6.9 percent year-on-year to $158.21 billion in the first 11 months of 2025, cementing its position as the world's leading source of outbound investment.

During the same period, Chinese companies made nonfinancial direct investments in 10,165 overseas businesses in 153 countries and regions, with total investment reaching $132.09 billion, up 2.7 percent year-on-year, the data showed.

Yu Zirong, deputy director of the Investment Promotion Agency, said that amid new global developments, the agency will strengthen cross-border investment service platforms to provide end-to-end, targeted and efficient support for companies going global.

By innovating and improving full-chain services for outbound investment, Yu said, the agency aims to encourage upstream and downstream firms to expand overseas together, supporting the orderly cross-border deployment of industrial and supply chains.

As part of this effort, the agency has introduced a "five-sphere" service matrix, designed to act as a comprehensive navigator for outbound businesses. The framework covers brand cultivation to enhance corporate identity, platform support to aggregate resources, and project-level services that provide lifecycle assistance.

Additionally, the strategy prioritizes "park empowerment" to upgrade overseas industrial cooperation zones and the establishment of long-term mechanisms to ensure sustainable dialogue and support.

The ultimate goal for 2026, the agency said, is to assist "chain-master" enterprises — leading firms that anchor supply chains — in coordinating efficiently with upstream and downstream partners, fostering self-sustaining industrial ecosystems abroad.

The emphasis on higher-quality outbound direct investment reflects China's long-term trajectory. According to the 2024 statistical bulletin of outward foreign direct investment, China has ranked among the world's top three sources of ODI for 13 consecutive years, underscoring its position as a major global investor.

By the end of 2024, Chinese investors had established around 52,000 overseas enterprises across 190 countries and regions, with 70 percent of them reporting profits or break-even performance.

In 2024, China's outward FDI spanned 18 industry sectors, with investments in five sectors, namely wholesale and retail, leasing and business services, manufacturing, finance, and mining; each exceeded $10 billion and collectively accounted for over 80 percent of the total. Investment in the construction sector and the information transmission/software and IT services sector recorded substantial growth, rising 80.5 percent and 205.5 percent year-on-year, respectively.

A significant evolution in the 2026 strategy is the expanded role of professional services as "soft infrastructure" for outbound firms. The reliance on capital alone is being replaced by a holistic support network comprising legal, financial, and digital services, reflecting China's ongoing reforms to improve the public service system for companies "going global" and to strengthen support for high-quality international cooperation.

The Hong Kong Special Administrative Region is also strengthening its role as a "super-connector". Wang Qing from Invest Hong Kong revealed that the city's 2025 policy address announced the establishment of a specialized outbound team to help Chinese mainland firms navigate complex legal and financial landscapes.

On the mainland, technology and finance are being further integrated into the outbound support system. The Shanghai CIPA Overseas Service Platform has introduced "AURA", an AI-driven agent designed to digitize global resource matching, helping reduce information asymmetry that often plagues manufacturing firms.

Financial institutions are also stepping up support. Banks like China Merchants Bank are rolling out cross-border financial systems capable of handling complex financing in 140 currencies, addressing the liquidity and financing challenges commonly faced by overseas subsidiaries, particularly in emerging markets.

lijing2009@chinadaily.com.cn