China needs to draw up policies and regulations to protect the rights of Chinese private enterprises in overseas investment, said Liu Shulin, a deputy to the NPC and vice-president of Shanxi Construction Engineering (Group) Corporation on Mar 9 during the 2016 two sessions.
The State Statistics Bureau announced that Chinese foreign direct investment exceeded $1 trillion for the first time by the end of 2015, making overseas investment a significant driver for China's economic growth.
Private enterprises are the major force to go global, with about 90 percent of projects abroad conducted by small and medium-sized enterprises as ranked by the number of enterprises, Liu added.
There is no law in China targeting investment in foreign countries. The current administration regulations on foreign exchange approval and management are neither systematic nor stable.
"In addition, investment law in China tends to be more targeted at State-owned enterprises, paying little attention to private ones," Liu said.
China needs to build a legal system of investment abroad which is far-sighted, international and reflective of China's national condition, he said.
More importantly, the country needs to add more regulations and rules for private enterprises, to support them in going global.
