Chinese investment in foreign countries has been growing continuously, with non-financial outbound foreign direct investment (FDI) rising to $82 billion in the first nine months of 2018, an increase of 5.1 percent year-on-year, Economic Daily reported on Oct. 18.
Statistics released by China’s Ministry of Commerce on Oct. 17 also indicate that foreign projects newly contracted by Chinese companies in the first three quarters of this year amounted to $154.5 billion, with a turnover of $109 billion realized during the same period, up 6.4 percent from the same period last year.
As of this September, Chinese firms have invested $36.63 billion in 113 overseas economic and trade cooperation zones which are under construction in 46 countries. Meanwhile, 4,663 Chinese companies have joined these zones, yielding a total output value of $111.7 billion, paying $3.1 billion in taxes and dues to their host countries.
“It’s not an easy achievement for China to maintain continuous growth in outbound investment and overseas cooperation against the backdrop of an unfavorable external investment environment and an overall decline in cross-border investment,” said Du Qirui, vice director of the research institute of foreign investment & cooperation of the Chinese Academy of International Trade and Economic Cooperation.
Du attributed China’s achievements in outbound FDI and overseas cooperation in the first three quarters of this year to three main factors.
The Chinese government has continuously deepened reform in streamlining administration, delegating powers, improving regulation, and strengthening services, and has endeavored to supervise and guide the rational development of outbound investment, Du explained.
Also, the inner strength of Chinese companies has been greatly improved, explained Du, citing that some enterprises have enhanced their capabilities in international operations, and have been able to integrate key resources and achieve good results by making the most of favorable opportunities of different industries in many countries and regions.
Besides, the construction of overseas economic and trade zones and investment in Belt and Road countries have contributed a lot to the steady growth of China’s outbound investment and cooperation, expressed Du, disclosing that China has seen the increase in investment to Belt and Road countries reaching over twice the growth of its overall outbound investment.
“In general, it’s no doubt that China’s outbound investment and overseas cooperation will continue to grow this year,” said Du. However, it should be noted that unfavorable factors for Chinese firms’ investing and seeking cooperation overseas are on the rise, requiring our close attention and cautious approach, he added.
SOURCE: PEOPLE’S DAILY
Photo: Rotherdam Port, Europe a typical FDI destination for China