Local concerns crucial in China's outbound investment

When Chinese companies formulate overseas investment strategies, they need to look beyond their own growth. They must also address the concerns of the local society, according to Sean Weir, national managing partner and chief executive officer of Canada-based law firm Borden Ladner Gervais LLP.

When expanding abroad, Chinese companies can expect better results through working with local partners and adopting a strategy of bit-by-bit expansion, said Weir on Tuesday in Beijing, where he was visiting to mark the opening of BLG's China representative office.

Lily Wang, a BLG partner who is qualified as a lawyer in both Canada and China, said that by comparison, the direct takeover of a company with a large market value inevitably requires government approval and raises concerns among local policymakers and the public.