On the Overseas Direct Investment of Chinese Privately-Owned Enterprises

Attributive to the internal strong vitality and dynamic mechanism as well as the government s progressive supportive policies, the Chinese privately owned enterprises (POEs) emerge fast, gradually playing active roles in undertaking overseas direct investment. However, like most Chinese firms, POEs are latecomers on the global stage with insufficient experience. In addition, their internal deficiencies and external limits make it more difficult to achieve successful overseas investment. This paper explores appropriate overseas investment strategies for the Chinese private enterprises. For successful overseas investment, POEs must take advantage of their vitality and dynamics and refrain from their disadvantages. Finally, this paper ends with assertion that the Chinese POEs with proper strategies equipped can surpass any other sectors in the Chinese economy and then play dominant roles in undertaking outward direct investment among the Chinese economy.