Bumpy ride for overseas M&A

Ministry of Commerce official Li Rongjun has reaffirmed the ministry's goal of raising total outward investment to US$60 billion in the next five years. But the target, which will require annual outward investment growth of 22%, is expected to face political and commercial obstacles, the South China Morning Post reported. By the end of 2005, the mainland's cumulative outward investment reached more than US$51 billion, according to official figures. UN figures show China accounted for only 0.25% of global outward direct investment in 2004, ranking 28th in the world. As part of its "go out" policy, Beijing is pushing overseas investment through mergers and acquisitions. But the policy is expected to face the kind of political and commercial obstacles that led to CNOOC abandoning its bid for Unocal.