China supports firms in defending rights overseas

BEIJING - Minister of Commerce Chen Deming said Friday that the Chinese government will support domestic firms investing overseas that wish to safeguard their rights according to law.

Chinese Commerce Minister Chen Deming answers questions of journalists during a news conference at the National People's Congress (NPC) in Beijing, China, March 8, 2013. [Photo by Jiang Dong/Asianewsphoto]

Chen said recipient countries should create a more transparent and just environment to boost the confidence of foreign investors.

The minister made the remarks in response to a media query about China's Sany Group's recent suit against US President Barack Obama.

Some legislators still have a Cold War mentality when assessing Chinese companies' overseas investment, Chen said.

"For every three Chinese yuan planned to be invested in the US, only one yuan is approved by the U.S. authorities," said Chen.

"But I believe this is not mainstream," he said, stressing the Chinese investment is increasingly welcomed around the world, either in Africa or in the United States, where politicians and lawmakers at state levels are particularly positive to the investment from China.

The Ministry of Commerce is working with multiple countries, especially developed countries in the west, to sign investment protection agreements to protect the interests of Chinese companies, he added.

On safety examination over foreign investment, Chen said it is understandable and China is establishing its own examination system and hopes to learn some experiences from the United States.

Meanwhile, such examinations should be open and transparent which can make overseas investment more predictable, Chen said.

A foreign company may be asked by US safety assessors to suspend or terminate its business even three years after it starts the operation there, which can result in heavy losses, he said.