Service, infrastructure contractors find fertile fields in developing nations
investment environment”, especially in the emerging markets.
Companies and resources are relatively cheap in many countries, and because of the lingering impact of the global downturn, many Western investors lack the cash to take advantage of buying opportunities.
That is the “pull” factor, and it helps explain why Chinese investors channeled capital into 6,128 overseas enterprises in 156 countries in 2014, with ODI rising 14.1 percent to $102.89 billion, according to theMinistry of Commerce.
The “push” factor is a domestic environment of loosening policy, government encouragement to “go global”, abundant cash reserves and a growing private sector. Chinese companies are ready and willing to pursue overseas expansion via outbound mergers and acquisitions.
“We’ve found that an increasing number of foreign companies in both developing and developed markets are ready to acceptChinese investment or work with Chinese companies,” said Long.
China’s ODI will post further growth this year. Non-financialODIis forecast to grow about 10 percent to $113 billion, the National Development and Reform Commission said inMarch.
Non-financial ODI surged 29.6 percent year-on-year to $25.79 billion in the first three months of this year, with the Association of Southeast Asian Nations, Australia, Russia and the EuropeanUnion as the top destinations.
Shenyang-based Northern Heavy Industries Group Co