Chinese investments abroad surpassed those made by foreign companies in the country for the first time in 2015, official data showed on Thursday.

China’s outbound direct investment (ODI) increased 18.3 percent in 2015 to hit a record high of US$145.67 billion, exceeding US$135.6 billion of foreign direct investment (FDI) in the country.

This made China a net exporter of capital and the second largest country in the world after the United States in terms of ODI, commerce ministry representative Zhang Xiangchen told a press conference in Beijing when introducing the 2015 Statistical Bulletin of China’s Outward Foreign Direct Investment.

It was the 13th consecutive year of rapid growth in Chinese outbound investments, bringing China’s share of global ODI from 0.4 percent in 2002 to 9.9 percent in 2015, Zhang said.

China’s investments in countries involved in the Belt and Road Initiative – Beijing’s plan to boost trade and connectivity among countries along the ancient Silk Road from Asia to Europe – increased 38.6 percent year-on-year to US$18.93 billion, accounting for 13 percent of total ODI in 2015, the report said.

Chinese investments in the European Union member countries totalled US$64.5 billion last year and US$40.1 billion in the United States.
 

Chinese spending spree set to continue

To overcome challenges brought by slowing growth, industrial overcapacity and insufficient demand at home, Chinese companies have been encouraged to go abroad to acquire foreign brands and technologies and to reach new markets.

Last year’s biggest acquisition by a Chinese company was state-owned ChemChina’s takeover of Italian tyre maker Pirelli, and China’s spending spree has continued this year with the acquisition of Swiss farm chemicals giant Syngenta, German robotics firm Kuka and Hollywood studio Legendary Entertainment, among others.

According the report released today, Chinese companies’ employed 112.5 million people abroad and paid various taxes worth US$31.19 billion in 2015, both numbers up significantly from the previous year.

While Chinese investments abroad have increased, European and American companies have complained about what they say is unequal treatment of foreign investment in China, with several sectors like financial services, health care and telecommunications shut for foreign investors.

China has denied criticism that its investment environment is worsening, saying that such complaints come from firms that have relied on low costs and preferential treatment to make easy profits and pointing out that foreign direct investments to the country are still on rise.

Please contact us in case of Copyright Infringement of the photo sourced from the internet, we will remove it within 24 hours.