Overseas investments riskier for Chinese firms as US tensions and Islamic State threats rise
- Challenges are seen as particularly acute in Asian and African countries, according to a Chinese risk assessment report
- Meanwhile, Washington and its allies are expected to step up efforts to counter China’s growing influence, the report says
Chinese firms are facing greater risks when they invest abroad because of rising tensions with the United States and growing security threats posed by Islamic State and al-Qaeda, a risk assessment report warns.
The report, released on Tuesday, said the challenges were particularly acute in Asian and African countries, which are at the centre of China’s global trade and infrastructure strategy, the “Belt and Road Initiative”. It also said the US and its allies were expected to step up efforts to counter China’s growing influence in those countries.
The report was published by Beijing-based Paitron Services and the China Overseas Development Association, a semi-official body under the National Development and Reform Commission.
“On the bilateral level, the US will continue to strengthen its trade protectionism, including through its economic ‘decoupling’ policy to circumvent competition from China and curb China’s development,” the report said.
“At the same time, it will step up its assault through the ‘technology cold war’ and introduce even more stringent investment review measures, export controls or extraterritorial jurisdiction tactics to contain China,” it continued.