China Provides Funds for Company Expansion

Authorities in Beijing will use part of the country’s foreign reserves of 2,132 billion dollars – the highest in the world – to support and accelerate the expansion and external acquisitions of Chinese companies, said Prime Minister Wen Jiabao. Wen also said that authorities want Chinese firms to increase their share of world exports.

The strategy of expansion abroad is meant to encourage foreign investments and acquisitions, especially those of large industrial groups owned by the state such as PetroChina , Chinalco, China Telecom and Bank of China.

“We need to hurry the implementation of the ‘out in front’ and currency reserves to combine with our company expansion,” said Jibao, in a speech delivered in front of Chinese diplomats.

The strategy “going out” is a slogan to encourage investments and acquisitions abroad, especially through state giants PetroChina, Chinalco, China Telecom and Bank of China.