Ser­vice, in­fra­struc­ture con­trac­tors find fer­tile fields in de­vel­op­ing na­tions

China Daily (Canada) - - FRONT PAGE -

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

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