The paper analyses data on state-owned enterprises as cross-border investors and takes a first step towards analysing their investment characteristics since 2000. It shows that the number of cross-border investments by state-owned enterprises was overall small, with most originating from the People’s Republic of China (hereafter “China”), and suggests that the investment preferences of state-owned enterprises may fuel excess capacity in the steel sector. This is because state-owned enterprises display a preference for building new capacity over acquiring existing capacity when investing abroad, and a preference for investment destinations with volatile demand growth. Data also suggest that state-owned enterprises might be more likely to undertake domestic capacity closures after a cross-border investment, which is likely influenced by recent policies introduced to curb excess capacity in China. Conversely, the data offer insufficient evidence regarding the link between cross-border investment by state-owned enterprises and capacity outcomes in target jurisdictions.