Foreign-based Chinese firms spend $8b for protection

Overseas-based Chinese companies spent over $8 billion for security in 2014 to protect growing Chinese interests abroad, a report said, and has recommended closer cooperation between private security firms and authorities. The report issued on Thursday by the non-governmental think tank Chahar Institute said the current number of Chinese companies based abroad exceeds 40,000 and over 1 million Chinese nationals were working overseas in those companies by the end of 2014. "Based on conservative estimates, security expenses of Chinese enterprises based abroad topped $8 billion in 2014," said the report, adding that the government spent less than 20 million yuan in 2012 to protect citizens overseas. Because State support may come at a high political cost, companies should turn to private security firms in China for services, including risk assessment, security training and on-site security and protection, according to the report. The report, issued after three Chinese nationals were killed in the Mali hostage crisis on November 20, came at the right time, said a senior military official at a press conference where the report was released. The official, who requested anonymity, added that citizen security has become a problem as China, with its rising national strength, hastens efforts to "go overseas." In July, data from China's foreign ministry showed that Chinese nationals made over 117 million overseas trips last year, a five-year high. But in the same year 1,451 Chinese nationals were killed overseas, China News Service reported.