Occupier Edge_Ed.5_US_0124

SOEs/non-SOEs (POEs) investment outflow (2011–2015)

There are some POEs in China that have a lack of experience in dealing with overseas business strategy and the management of their business entities overseas. For instance, some do not possess adequate knowledge on:

100%

90%

46.60%

43.90%

50.90%

80%

> > Long-term overseas business strategy development and risk appreciation.

34.70%

WHAT OCCUPIERS WANT

70%

55.10%

> > The investment environment and culture of the countries they are investing in.

60%

50%

> > Simply general experience in overseas investment.

65.30%

40%

53.40% 56.10% 49.10%

30%

44.90%

The unanswered question: What are the business opportunities for Chinese corporations? The infrastructure initiative could create new markets for Chinese companies. Corporations from China will certainly be able to use the B&R initiative as a platform to expand their businesses globally. The reasons for these corporations to go global are many, including penetrating new markets for business growth, procuring natural resources, and obtaining the latest technologies and advanced management skills. Today, many Chinese corporations are some of the largest in the world and have, therefore, a huge amount of financial firepower at their disposal to ensure their global visions are a success.

20%

10%

0%

2013

2014

2015

2011

2012

non-SOEs

SOEs

Source: Ministry of Commerce, www.comnews.cn, Cushman & Wakefield Research

The B&R initiative: Top business opportunities for overseas corporates

Outbound capital projects and infrastructure

Equipment / technology / intellectual property

Engineering, procurement and construction / project finance

New client developments

Chinese partnerships abroad for accessing the Chinese market

Chinese funding for divestment, fundraising, etc.

Outbound financing / private equity funding

Enhancement of trade with markets which have good infrastructure

Source: PwC, Cushman & Wakefield Research

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