Several high profile Chinese firms may be on the receiving end of government scrutiny over their overseas acquisitions, but the authorities are not cracking down on foreign investments, a Beijing-backed think tanker said.
"The Chinese government is not discouraging overseas investment. It's just that the government has started regulating overseas investment," Cao Wenlian, director general of the International Cooperation Center of the National Development and Reform Commission (ICC-NDRC), told CNBC.
The think tank falls under the purview of the National Development and Reform Commission (NDRC), a government agency that heads up economic and social policy in China.
As there were risks associated with Chinese firms making foreign investments, it was part of the government's role to control and fend off risks, Cao explained. "That might make the outside world feel that the Chinese government is discouraging investments abroad. But it's not," he added.
"I believe every government is responsible for overseeing the behavior of their companies — to see that their leverage and other actions are in line with international laws," Cao said.
Regulators in the world's second-largest economy have been cranking up the heat on local corporates as part of a broader crackdown on financial risk and capital outflows before the 19th party congress in the fall.