BEIJING - CHINESE overseas investment projects totalling more than 100 million yuan (S$21.34 million) that are backed by government loans will have to undergo a review by the country's commerce ministry, the ministry said in an announcement effective Jan 1.

Companies would have to show that they are able to see the project through from beginning to end, in order to be approved for investments backed by low-interest or no-interest loans from the Chinese or overseas government.

The ministry did not give a reason for the ruling.

Some officials active in overseas investment policy have voiced concern over Chinese firms winning overseas bids because of their low pricing, but then lacking the experience or skills to properly complete the project.

Such incidents give Chinese firms a reputation for shoddy quality and create long-simmering business and investment disputes in host countries, the officials have said. -- REUTERS