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US$7 billion Chinese overseas forestry investments
2015-06-03
Brief:China has around 200 forestry investment and cooperation projects in Asia, Europe, Africa, America and Oceania worth an estimated US$7 billion.
It has been reported that domestic investors invested some US$103 billion in 156 countries in 2014, up 14% year on year. In 2014 China's outbound investment surpassed inflows of foreign investment such that there was a net capital outflow. This marks a fundamental change in China's economic development pattern since the reform and opening-up period.
 
According to the available statistics China has around 200 forestry investment and cooperation projects in Asia, Europe, Africa, America and Oceania worth an estimated US$7 billion and employing almost 10,000. China's overseas forestry investment is benefitting from new opportunities through free trade zone strategies, bilateral investment protection agreements and deals on double taxation.
 
Since the creation of an International Trade and Investment Promotion office within the China Forest Industry Federation the rights and obligations of China's overseas forestry enterprises secure wider support.
 
However, it is recognized that Chinese enterprises investing in overseas forestry face many challenges such as an imperfect supportive government policy and insufficient financial and management support.
 
Other challenges include a lack of experience on the part of investors, a low level of business management capacity, an inability to correctly assess and react to risks and a lack of international business acumen.

The Timber Network

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