The Chinese government has created a new investment arm of the China Investment Corporation.
The new subsidiary of China's sovereign wealth fund has been given a 5-billion US dollar seed.
Gu Dawei with the National Development and Reform Commission says the new division is meant to try to help Chinese companies invest overseas, with a focus on "industrial capacity."
"The guideline specifies that companies can mortgage offshore assets and ask for loans inside the country. We view it as a major breakthrough. All Chinese financial institutions are also being asked to speed up their pace of globalization, setting up branches abroad, as well as providing financial services to help Chinese companies go global."
The focus of the new 5-billion US dollar initiative is focused on the automotive, rail and machinery sectors.
Gu Dawei says the NDRC is encouraging Chinese companies to work together when going abroad.
"We're asking companies to adopt new business models, and band together to go overseas. We're recommending they focus on industry cluster zones and industrial parks. We're also asking that large Chinese operations with subsidiaries encourage their small-and medium-sized operations to invest overseas."
The Chinese government has been pushing to have more of the country's industrial firms go international over the past year.
