China vows to protect overseas interests as hurdles and uncertainties mount

Beijing has vowed to better protect its overseas interests, as the world’s second-largest outbound investor navigates a landscape marked by escalating geopolitical tensions and trade disputes.

And experts have warned that supply chains that relocated to avoid US tariffs during President Donald Trump’s first term may encounter new difficulties.

In 2024, China’s non-financial outbound director investment reached US$143.85 billion, up by 10.5 per cent, year on year, the Ministry of Commerce said on Tuesday. Meanwhile, the value of its new contracts for overseas projects hit a record high of US$267.3 billion, and the number of labour personnel dispatched abroad increased by 17.9 per cent, year by year, to around 409,000.

In addition to enhancing the quality and return of overseas investments, the ministry also mandated at its meeting on Tuesday that commerce departments at all levels must bolster risk controls and safeguard overseas interests.

When negotiating bilateral deals and country-level cooperation agreements, such as free-trade deals, the protection of China’s interests, including those of enterprises and individuals, should be taken into consideration, said Chen Fengying, former director of the Institute of World Economic Studies at the China Institutes of Contemporary International Relations.

State-owned enterprises are better equipped to protect their employees’ safety and interests in overseas projects, benefiting from support from the Chinese government, Chen said. And she noted that, in contrast, private companies pursuing overseas development are confronted with greater challenges and are less prepared for uncertainties, such as those arising from local unrest and corruption.

Additionally, she pointed out that, in countries and regions in turmoil or with weak governance, collaborative enforcement with China could serve as a practical solution for both sides to uphold laws and regulations.