WALL STREET JOURNAL

The political furor that accompanies many overseas investments by Chinese companies is easy to understand. What to do about the investments is a lot more complicated.

According to the US congressional commission, China's State-owned companies accounted for 90 percent of the value of Chinese investments in the US industrial-machinery, aerospace, automobile and logistics industries between 2007 and the third quarter of 2011. Some deals by State-owned firms in 2012 were especially controversial.

Canada approved a bid by State-owned CNOOC to buy Canadian energy concern Nexen, but warned that further purchases by Chinese State-owned companies of Canadian oil-sands assets would be approved only under "exceptional" circumstances. 

Barring investments from such companies would be a loser economically, cutting off wobbly economies from a rich source of funding.

CNBC

Goldman Sachs may have been significantly off the mark on its call for a bumper rally in Chinese equities in 2012, but this year, the US investment bank is confident that its upbeat outlook for the market will materialize.

According to the bank's Chief China Equity Strategist, Helen Zhu, a pickup in earnings growth and the expectation of economic reforms will lift the MSCI China Index 8 percent in 2013 from current levels. Goldman forecasts earnings growth of 9 percent in 2013, driven by an acceleration in gross domestic product (GDP) growth to 8.1 percent from an expected 7.7 percent last year.

"Faster reform progress is the key upside risk," Zhu wrote in a note. "We see better returns heading into the second quarter on a pickup in exports and a kickoff of reforms."