The Service Subsystem
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The steady progression of outbound investment presupposes services at a certain level of quality. The steady increase in the size of outbound investment requires the comparable steady improvement of services at the same pace. Chinese enterprises began going global at a time when services were underdeveloped. The outcome is imaginable. Of all overseas investments made by Chinese enterprises, only one third were successful, and the others broke even or failed, according to the Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises published in 2009 by the Economic Information Department of the China Council for the Promotion of International Trade (CCPIT). An important reason for such a low success rate lies in the underdeveloped, low-quality system of services in China. In order to provide Chinese enterprises with effective support for outbound investment, it is necessary to step up building the service subsystem as an important part of China’s outbound investment promotion system. The Chinese government should take measures to accelerate the growth of industry associations and prioritize the development of credit rating services.