Non-fi­nan­cial ODI up in Jan-Nov

China Daily (Hong Kong) - - BUSINESS - By ZHONG NAN

China’s out­bound di­rect in­vest­ment from the non-fi­nan­cial sec­tor stood at around 1.07 tril­lion yuan ($161.7 bil­lion) in the first 11 months, up 55.3 per­cent on a year-on-year ba­sis, ac­cord­ing to data re­leased by the Min­istry of Com­merce on Thursday.

Chi­nese com­pa­nies com­pleted 561 merger and ac­qui­si­tion deals in global mar­kets be­tween Jan­uary and Novem­ber this year, and $82.4 bil­lion or 30 per­cent of their to­tal in­vest­ment flowed into man­u­fac­tur­ing busi­nesses.

Min­istry spokesman Sun Ji­wen said the in­vest­ment cat­e­gories of Chi­nese com­pa­nies have been fur­ther ex­panded in over­seas mar­kets. High-end man­u­fac­tur­ing, in­for­ma­tion and soft­ware tech­nol­ogy ser­vices were hot ar­eas for China’s ODI over the past months.

Ma­jor in­vest­ment des­ti­na­tions were mem­bers of the As­so­ci­a­tion of South­east Asian Na­tions, Aus­tralia, the Euro­pean Union, Rus­sia and the United States. “Coun­tries and re­gions along the Belt and Road Ini­tia­tive re­mained hot des­ti­na­tions as com­pa­nies de­ployed their fi­nan­cial re­sources,” said Sun.

The trade, ser­vices and in­fra­struc­ture net­work pro- posed by China in 2013 en­vi­sions a Silk Road Eco­nomic Belt and a 21st Cen­tury Mar­itime Silk Road, cov­er­ing about 4.4 bil­lion peo­ple in more than 60 coun­tries and re­gions in Asia, Europe and Africa.

Chi­nese com­pa­nies signed 7,367 projects in­clud­ing dams, sta­di­ums, air­ports and power sta­tions in coun­tries along the routes be­tween Jan­uary and Novem­ber, with a con­tract value of $100.36 bil­lion, up 40.1 per­cent on a year-on-year ba­sis. These projects ac­counted for 52 per­cent of China’s newly signed con­trac­tual for­eign projects.

“China’s in­vest­ment in rail­way projects in African coun­tries in­clud­ing Nige­ria, Ethiopia and Dji­bouti has also boosted ex­ports of the coun­try’s power-gen­er­at­ing equip­ment, con­struc­tion ma­chin­ery, build­ing ma­te­ri­als, telecom­mu­ni­ca­tions, rail­way ve­hi­cles and sig­nal sys­tems,” said Lin Gui­jun, a pro­fes­sor at the Uni­ver­sity of In­ter­na­tional Busi­ness and Eco­nom­ics in Bei­jing.

Lin said Chi­nese en­ter­prises need to ab­sorb qual­ity re­sources from global brands through over­seas merger and ac­qui­si­tion ac­tiv­i­ties, and build core strengths on brand, tech­nol­ogy and tal­ent rather than low-end man­u­fac­tur­ing, mak­ing tech­no­log­i­cal up­grad­ing faster and lo­cal­iz­ing global op­er­a­tions.

Gao Songya con­trib­uted to this story.

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