$1.4b overseas energy projects approved in Oct

The National Development and Reform Committee approved several overseas energy projects, involving more than 9 billion yuan ($1.44 billion), in October.

In the past, the government had only encouraged energy businesses "to go out" and find ways to supplement China's energy and resources. Nowadays, though, going outside the country can also help eliminate overcapacity in some industries, in the photovoltaic industry, for example, said He Zhenwei, vice-secretary general of the China Industrial Overseas Development & Planning Association.

"Energy and resource businesses' overseas activities are also good for our industrial improvements and the adjustment of our economic structure," he said. "Furthermore, they increase employment in the related countries and promote integration of advanced international companies."

Chinese companies that are developing their overseas businesses can make themselves stronger competitors and take on more weight in the international energy market, said Ren Ninghao, a researcher from CIConsulting, which does industry and market research.

China's energy companies are pursuing more global mergers and acquisitions but find themselves often rebuffed by countries that say, by turning the companies away, they are trying to protect their national security. Whether the overseas projects can turn a profit has also been repeatedly questioned.

Lacking experience, Chinese energy companies should research and investigate local markets, laws and regulations, understand other countries' cultural customs and obtain insurance to protect their investments.