广播听力：Outbound Investment is significant for Chinese Enterprises

Reporter:
Chinese overseas investments face huge challenges amidst the global credit crunch.

Senior Commerce Ministry official, Wu Xilin, describes these challenges.(www.hXen.com)

"Firstly, financing is more difficult for these enterprises; secondly, turbulence in the world economy brings more risk to the trading market; thirdly, the number of Labor disputes is increasing."

However, Wu notes that the financial crisis also brings opportunities for Chinese businesses. This includes the chance of mergers and acquisitions.

In the first quarter of this year, China's non-financial overseas investment has dropped, while China's contracted projects was worth over 12 billion U.S. dollars, or thirty percent higher than the same period last year.

Zhang Yansheng, is the director of International Economic Institute, affiliated to the National Development and Reform Commission.

He says many companies, have worked out some effective measures, to enlarge their overseas investment. Establishing trading zones is one of them.

"Haier group is a good example. It has built up a trading zone in Pakistan, which easily brings related small and medium enterprises to Pakistan."

Wu Xilin adds that at this critical time, it's important to encourage more companies to increase their overseas investment.

He explains that increasing these investments can contribute to trade stability and also help ease China's trade surplus expansion.

Wu Xilin adds that the Commerce Ministry will work out positive taxation measures, to protect these companies from risks in the turbulent financial market.

"It is an important strategic time for Chinese enterprises to enlarge their outbound business. But enterprises themselves should prevent from the risk brought by the financial crisis. Ministry encourages more enterprises to adjust their development tactics first and then go abroad to conduct mergers and contracted projects."

He predicts in the next 3 to 5 years, nearly half of Chinese companies will increase overseas investment.

Zhangcheng, CRI News.