Media365
Chinese firms should prioritise regional political stability when they make overseas investment decisions, as mounting geopolitical tensions and currency fluctuations increase the risks of doing business abroad, a prominent Chinese entrepreneur has warned.
“The current unrest in the Middle East, fluctuations of the US dollar and international complexities serve as a reminder for firms expanding abroad: we must go to locations that offer relative stability,” said Liu Yonghao, founder and chairman of agricultural conglomerate New Hope Group.
Liu said he favoured regions such as Southeast Asia, Australia and New Zealand – whose markets are comparatively more predictable and geographically distant from conflict zones.
His comments came as an increasing number of Chinese firms look to overseas markets for new growth opportunities and an escape from sluggish demand and intensifying competition at home.
