Chinese outbound direct investment in the non-financial sectors almost doubled in the first quarter from a year earlier as Chinese companies were encouraged to invest abroad and opportunities arose from European debt troubles and the global financial crisis.

China's outbound investment in non-financial sectors increased by 94.5 percent in the first quarter from a year earlier, rising to $16.55 billion, the ministry said on Tuesday at a media briefing, without disclosing figures for particular regions.

Of all Chinese outbound direct investment in the first quarter of 2012, about 40 percent, worth about $6.2 billion, went into mergers and acquisitions.

China makes the fifth largest amount of outbound direct investment of any country in the world. By the end of March, its accumulated outbound direct investments in non-financial sectors had totaled $338.5 billion. Last year saw such investments increase by 1.8 percent year-on-year to reach $60 billion. 

At the same time, developed and developing countries are welcoming Chinese investment.

During a recent visit to China, Italian Prime Minister Mario Monti expressed gratitude for Chinese investment. He said he expects the influx of money will spur economic growth in his country, which is perhaps being stymied by recently adopted austerity measures. Besides Italy, the leaders of other European nations, including Germany and France, have said they will welcome more investment from China.

In January, Sany Heavy Industry Co Ltd announced plans to pay 324 million euros ($426 million) for 90 percent of Putzmeister, the largest maker of concrete pumps in Germany.

China has been a target of trade protectionism for years and this situation has intensified recently, Shen said. That has driven Chinese companies to try to avoid trade disputes by investing and opening factories abroad.

By the end of March, 809,000 Chinese were working overseas under contracts, up by 40,000 from the same period last year.

 

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