BUSINESS

As Chinese Companies Grow Overseas, Knowing Who Owns What Is Crucial, Professor Says

Published: Aug. 27, 2025 8:22 p.m. GMT+8

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Zha Daojiong. Photo: iMorgan

As Chinese companies increasingly expand abroad, a lack of clarity around who exactly owns their overseas assets is one of the biggest risks they face, according to a professor at Peking University.

The academic’s warning comes as companies faces increasingly complex challenges, particularly miners operating in developing countries where newly elected governments often reassess or overturn contracts signed by their predecessors.

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Chinese companies expanding abroad face major risks due to unclear ownership of overseas assets, especially in developing countries with unstable governments.
Professor Zha Daojiong recommends using international rules, treaties, and dispute resolution mechanisms rather than relying only on local contacts.
Cooperation with multilateral development banks like the Asian Infrastructure Investment Bank can help mitigate financing risks.

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Who’s Who

Beijing Urban Construction Group Co. Ltd.: Beijing Urban Construction Group Co. Ltd. (北京城建集团有限责任公司) successfully used international arbitration to regain its right to continue building an airport terminal in Yemen, after local authorities obstructed the project. This case exemplifies how international rules can resolve investment disputes for Chinese companies operating abroad.

Asian Infrastructure Investment Bank: The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose cooperation is stressed by Professor Zha Daojiong as important for Chinese companies. By working with institutions like the AIIB, companies can mitigate financing risks when conducting business overseas.

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