Illustration: Lu Ting/GT

Corporate China has been accelerating its overseas expansion pace over recent years, thrusting local enterprises into markets across North America, Asia, Europe and Africa. Similarly, Chinese companies have demonstrated increased willingness to expand into a multitude of sectors, including mining, wholesale, retail, manufacturing and real estate. Last year alone, Chinese entities invested a total of $90.17 billion in nonfinancial direct investment, up 16.8 percent from 2012, according to data from the Ministry of Commerce (MOFCOM).

But along with this global push, many ambitious Chinese firms have expressed consternation regarding the complex procedures that have long accompanied overseas deals. Such dismay is nothing new. Roughly a decade ago, Chinese companies began calling for the establishment of a more supportive regulatory environment that would assist better-funded businesses in their quest to expand abroad. To date, the impact of these calls has been somewhat limited, prompting experts and market participants to complain about the slow speed of improvements.

However, we should realize that the government has recently begun to make progress on this front. On April 16, the MOFCOM started soliciting public opinion on tentative revisions to China's overseas investment regulations. Among the most notable policies included on the draft was a provision that would require Chinese companies to simply register foreign investments with the MOFCOM, rather than submitting themselves to a lengthy review process by the ministry as is currently required.

This draft followed fast on the heels of revised regulations from the National Development and Reform Commission (NDRC), the country's top economic planning body, which eased controls and simplified procedures pertaining to overseas investment. Under the new rules, only Chinese companies with plans to invest more than $1 billion abroad must gain approval from the NDRC. Previously, domestic enterprises investing more than $100 million in nonnatural resource sectors, or $300 million in natural resources, had to secure the commission's blessing first.

Meanwhile, the NDRC's new policy raft streamlines the approval protocol as well, allowing companies to submit their investment applications directly to provincial-level economic planners, instead of first passing documentation through county- and city-level authorities. In the past, this lengthy chain-of-command meant it could take months - or even more than a year in some cases - to obtain necessary government approvals. Along with such steps, the NDRC announced it will also post materials related to overseas deals on its website in a move to promote transparency. Of course, it bears pointing out that these new rules pertain only to projects in nonsensitive sectors, countries and regions.

Earlier, in 2012, the State Administration of Foreign Exchange (SAFE), one of the three top administrative bodies charged with clearing overseas investment deals, took steps of its own to smooth foreign capital transactions. New rules released by the SAFE at that time simplified overseas capital remittance and the administration of loans in offshore markets.

Still though, many observers wonder whether these recent concessions will be enough to support foreign investment. Authorities certainly have space to improve their policies - for instance, officials can simplify the process by which domestic enterprises secure loans to bankroll overseas acquisitions.

China's foreign investment drive is expected to continue for many years to come. To help this inevitable process along, relevant authorities and businesses must explore innovative practices and strategies.

Large cashed-up enterprises are encouraged to grasp current opportunities to broaden their horizons and build their brands globally. These companies should be aided with appropriate supportive policies. At the same time, internationally oriented firms must take steps to help themselves - for instance, they should cultivate the expertise needed to successfully navigate the global mergers and acquisitions market. Many of China's biggest businesses also lack knowledge of foreign taxation and accounting policies. Legal and cultural differences have also proved problematic for Chinese companies with assets abroad. These and other challenges will all have to be managed effectively as domestic enterprises widen their global reach.

The article was compiled by Global Times reporter Yu Xi based on speeches delivered at the 2014 Cross-border Investment and M&A Summit held by Morning Whistle Group and the 21st Century Business Herald. bizopinion@globaltimes.com.cn