Dec. 1 (NBD) -- China's outward investment has picked up steam since the beginning of the new century, reaching 196.15 billion U.S. dollars in 2016. 

This pushed China to the second position around the globe in this respect from the 26th position in 2002, according to the report on China's outward investment released by the country's National Development and Reform Commission Thursday. 

From 2002 to 2016, the outward investment of Chinese enterprises saw nearly a 72-fold increase, representing an average annual growth rate of 35.8 percent, says the report.

Bai Ming, deputy director of the international market research institute of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told NBD that the focus of Chinese enterprises investing outbound has been broadened to the capital export in addition to the pure commodity export.   

As of the end of 2016, Chinese investors have established presence in 190 countries and regions around the world, and have set up 37,200 firms abroad, with the total assets of their overseas firms hitting up to 5 trillion U.S. dollars. 

However, the report points out that the quality and yields of Chinese enterprises' outward investment remain to be improved, and Chinese companies still lag behind foreign multinationals in terms of brand reputation, overseas business operations, and risks handling, which means relatively weak influence in the global value chain. 

Chinese investors are urged to enhance investment risks evaluation as well as the understanding of investment destination before making decisions to go abroad. 

He Zhenwei, secretary-general of the China Overseas Development Association, told NBD that the rapid growth of outward investment has brought a slew of issues, including vicious competition and irrational investment. 

In the areas like infrastructure construction, transportation, and light industry in foreign countries, where have been crowded by Chinese investors, enterprises might be involved into a unhealthy competition for one project, He noted. 

Not only so, some Chinese companies just get on the bandwagon heading to foreign countries and regions without truly understanding the markets. When facing difficulties in overseas operations, such companies will likely take risks to invest virtual industries or even transfer funds illegally, He explained. 

Nowadays, restrictions on investment targets are tougher than before. For example, projects may be required to comply to environmental protection or green development.

This poses a new challenge to the outward investment of Chinese enterprises. 

China will endeavor to build an open economy system, with the reform of the country's outward investment management system to be one of its focuses, according to the above-mentioned report. 

Enhancing the authentication verification of enterprise investments and promoting legislation concerning outward investment will be two important parts of the reform, according to He. 

It is also essential to set up a credit record management system as well as information sharing platform, He said.  

Email: lansuying@nbd.com.cn