China’s Outbound Direct Investment (ODI) has been increasing sharply and is likely to continue this trend in the coming year. The ODI structure is concentrated in Asia and is currently oriented towards natural resources, although there may be some diversification in the future. From a long-term perspective, Chinese companies should consider three key factors when investing in foreign markets: exploit market opportunity; accelerate technical and business skill evolution and improve the overall risk or opportunity profile. Although expanding into new markets is a complex process, there are many lessons that Chinese companies could learn from other countries. This could help them to successfully manage the process by addressing critical issues. By Enrico Lanzavecchia, director, and Claire Zhong, manager at Value Partners, Beijing.