On China 's Overseas Investment Supervision System

Overseas investment is an important way for a country to participate in internationalcompetition. Under the background of economic globalization, at the end of the last century,China started its "going out" strategy which is focused on overseas investment. A large numberof Chinese companies took this opportunity to expand their foreign investment scale and havemade impressive progresses. However, due to the late start and the lack of experience, China’soverseas investment supervision is unable to adapt to the accelerating pace of businessinvestment. Therefore, enhancing the study of foreign investment supervision and improving theforeign investment supervision system have great significance for raising the success rate ofChina’s overseas investment and the level of cross-border operations of Chinese enterprises. Ona global scale, including both developed and developing countries, there is a certain degree ofoverseas investment supervision and there is no single country which fully implements theliberalization policy on overseas investment. Therefore, researching into the global overseasinvestment supervision and developing our own investment supervision system which is in linewith our distinctive features and combined with our own reality have great significance forpromoting China’s overseas investment.Starting with the current situation of China overseas investment, this article presents acomprehensive analysis of the establishment and development process of China’s overseasinvestment supervision system and a deep research of the problems and defects of the currentsupervision system. In the following, this article will put forward some relevant policyrecommendations for the improvement of China’s overseas investment supervision system byanalyzing the advantages and distinguishing features of the overseas investment supervisionsystem of the United States and South Korea. The specific structure of this article is as follows:Chapter One first briefly introduces the theories of overseas investment and relevantliteratures of China’s overseas investment supervision system and then presents the researchmethods employed, namely, the historical research method, comparative research method andpractice research method to make a comprehensive analysis of China’s overseas investmentsupervision.Chapter Two first briefly describes the current situation and the characteristics of China’sforeign direct investment development and then gives an overview of the supervision system andkey supervision elements of Department of Commerce, Development and Reform Commission,State Administration of Foreign Exchange and State owned assets supervision andAdministration Commission, which are responsible for supervision of foreign investment. In thefollowing, some major issues, such as weak risk control ability, low degree of internationalization, the accumulation of disorderly competition and outstanding illegalissues, faced by the Chinese enterprises when investing overseas will be analyzed to address thatthe current legal system of supervision is not perfect, supervision system is unreasonable,policies are not complete and other issues.Chapter Three will compare the whole system and relevant experience in overseasinvestment supervision of two typical countries, the United States and South Korea, to provide areference in order to further improve our supervision system. And the several following aspectswill be addressed in order to strengthen supervision services, namely, legal services, overseasinvestment insurance system and protection for small and medium enterprises.Chapter Four puts forward that the overall vision of foreign investment supervision systemshould be improved and from multiple aspects of government, enterprises, research institutionsand related associations, a sound supervision system should be established. Meanwhile, greatimportance of diplomatic channels should be attached to overseas investment supervision.