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China Jan-Oct outbound direct investment surges

Updated: Nov 16,2015 8:21 PM     Xinhua

The Chinese mainland made around 589.2 billion yuan (about $95.21 billion) in non-financial investment in overseas markets in the first ten months of 2015, up 16.3 percent year-on-year, the latest data showed on Nov 16.

Outbound direct investment (ODI) in the period covered 5,553 overseas-based companies in 152 countries and regions, the Ministry of Commerce (MOC) said.

The number of foreign-contracted projects worth more than $100 million to 307, up by 39 from last year, with the total contract amount reaching $108.3 billion in the January-October period, said Jiang Wenbin, deputy head of the MOC Department of Outward Investment and Economic Cooperation.

The projects covered a wide range of fields including transportation, housing construction, electric power engineering, telecommunication and petrochemical industries, Jiang said.

During the period, Chinese investors spent around $9.94 billion in developing manufacturing industries in overseas markets, up 82.8 percent year-on-year, the data showed.

The manufacturing investment mainly went to automobiles, medicine, computers, communication devices, rubber and plastic products, Jiang said.

The China-proposed Belt and Road Initiative, aimed at improving international connections via building transport networks, contributed a lot to the ODI surge, Jiang said.

In the first 10 months, direct outbound investment in 49 nations along the Belt and Road totaled $13.17 billion, up 36.7 percent year-on-year. The investment was mostly made in Singapore, Kazakhstan, Laos, Indonesia and Russia.

Meanwhile, new foreign-contracted projects in 60 countries along the route rose to $64.55 billion, up 21.6 percent from last year and accounting for 43.3 percent of the country’s total projects in overseas market.

Companies’ rising desire to expand overseas as domestic profits wane, and a reduction in administrative approvals, among others, have combined to make China the world’s top capital exporter, Jiang added.

The country became a net capital exporter for the first time last year, when ODI surpassed foreign direct investment (FDI). ODI grew 14.1 percent in 2014, eclipsing the 1.7-percent growth recorded for FDI.