Chinese government officials and executives are encouraging private Chinese firms to expand abroad, Reuters reported. Su Ning, a former deputy governor of the People’s Bank of China who now heads China UnionPay, said the government "is very strongly in favor of cross-border mergers and acquisitions," and that overseas acquisitions "should play a role in China’s strategic economic restructuring." Officials said the post-global economic downturn environment created bargains for firms to pursue abroad. Particular attention was given to expansions or acquisitions through a partnership between private firms and state-owned enterprises (SOEs). Private firms often have trouble accessing capital to finance their ventures overseas, while SOEs can encounter political difficulties when acquiring foreign companies in politically sensitive areas.
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