Chinese firms should focus on investing in politically stable regions: entrepreneur | South China Morning Post

VirtualRichDream · 2026-03-12T14:14:45+00:00

Chinese firms should prioritize political stability in overseas investments due to increasing geopolitical tensions and currency fluctuations. Entrepreneur Liu Yonghao advises focusing on stable regions like Southeast Asia and Australia for safer growth opportunities.

VirtualRichDream

2026-03-12 14:14:45

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Chinese firms should prioritise regional political stability when they make overseas investment decisions, as mounting geopolitical tensions and currency fluctuations increase the risks of doing business abroad, a prominent Chinese entrepreneur has warned.

“The current unrest in the Middle East, fluctuations of the US dollar and international complexities serve as a reminder for firms expanding abroad: we must go to locations that offer relative stability,” said Liu Yonghao, founder and chairman of agricultural conglomerate New Hope Group.

As one of China’s leading entrepreneurs and overseas investors, Liu has been driving New Hope Group’s global expansion for nearly 30 years. He is also a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the country’s top political advisory body.

“It is better for us to invest more in places that we understand relatively well and where we can have a better grasp of the situation,” he added, speaking on the sidelines of the “two sessions” – the annual meetings of China’s top legislature and the CPPCC – in Beijing on Tuesday.

Liu said he favoured regions such as Southeast Asia, Australia and New Zealand – whose markets are comparatively more predictable and geographically distant from conflict zones.

His comments came as an increasing number of Chinese firms look to overseas markets for new growth opportunities and an escape from sluggish demand and intensifying competition at home.

But recent geopolitical developments – such as the escalating conflict in the Middle East and the US military intervention in Venezuela earlier this year – have heightened risk awareness and prompted more caution among investors.

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