In­vest­ment rises

Cat­e­gories ex­panded to in­clude high-end man­u­fac­tur­ing, info trans­mis­sion and soft­ware tech ser­vices

China Daily (USA) - - FRONT PAGE - By ZHONGNAN zhongnan@chi­

China’s out­bound di­rect in­vest­ment jumped 53.7 per­cent yearon-year to 882.78 bil­lion yuan in the first three quar­ters.

China’s out­bound di­rect in­vest­ment jumped 53.7 per­cent year-on-year to 882.78 bil­lion yuan ($134.22 bil­lion) in the first three quar­ters of this year, the Min­istry of Com­merce said on Tues­day.

Chi­nese com­pa­nies com­pleted 521 over­seas merger and ac­qui­si­tion projects, in­clud­ing 119 in the United States, dur­ing the first nine months, with the trans­ac­tion value reach­ing $67.44 bil­lion, sur­pass­ing the to­tal amount of last year.

The merg­ers and ac­qui­si­tions in­volved 18 in­dus­tries in 67 coun­tries and re­gions.

“The in­vest­ment cat­e­gories of Chi­nese com­pa­nies have been fur­ther ex­panded in over­seas com­pa­nies. High­end man­u­fac­tur­ing, in­for­ma­tion trans­mis­sion and soft­ware tech­nol­ogy ser­vices were hot ar­eas for China’s ODI over the past nine months,” said Shen Danyang, the min­istry’s spokesman.

The US, the Cay­man Is­lands and Hong Kong ranked the top three hot des­ti­na­tions for Chi­nese main­land in­vest­ment, with a to­tal amount of $16.24 bil­lion, $15.71 bil­lion and $9.32 bil­lion re­spec­tively.

Shen said the Belt and Road Ini­tia­tive had also boosted busi­ness co­op­er­a­tion be­tween Chi­nese and over­seas firms.

A to­tal of 4,191 en­gi­neer­ing con­tracts were signed by Chi­nese com­pa­nies in 61 coun­tries along the Belt and Road routes be­tween Jan­uary and Septem­ber, with a com­bined con­tract value of $74.56 bil­lion.

Chi­nese com­pa­nies in­vested $17.9 bil­lion in 56 eco­nomic and trade co­op­er­a­tion zones in 20 coun­tries along the Belt and Road dur­ing the same pe­riod, cre­at­ing 163,000 jobs for lo­cal peo­ple.

“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 Shen.

CIMC EN­RIC Hold­ing Ltd — the en­ergy, chem­i­cal and liq­uid food equip­ment man­u­fac­tur­ing unit of China In­ter­na­tional Marine Con­tain­ers (Group) Ltd—made an out­right pur­chase in June of United King­dom-based Briggs Group Ltd, a food equip­ment provider, for 23 mil­lion pounds ($28.6 mil­lion).

With its tech­nolo­gies, CIMC EN­RIC ex­pects to dou­ble both Briggs’ rev­enue and profit over the next five years.

Yu Ji­amin, CIMC EN­RIC’s di­rec­tor for strate­gic de­vel­op­ment, said with global in­dus­try up­grad­ing and the im­pact of “Made in In­dia” in re­cent years, the tra­di­tional mode of low-end mass pro­duc­tion could hardly meet global man­u­fac­tur­ing de­mands.

“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 lowend man­u­fac­tur­ing, mak­ing tech­no­log­i­cal up­grad­ing faster and lo­cal­iz­ing global op­er­a­tions,” said Yu.

The min­istry said pri­vate and non-State-owned en­ter­prises ac­counted for 86.6 per­cent of China’s merg­ers and ac­qui­si­tions ac­tiv­i­ties be­tween Jan­uary and Septem­ber.

“Chi­nese com­pa­nies, es­pe­cially from the pri­vate sec­tor, in­creas­ingly un­der­stand the im­por­tance of over­seas in­vest­ment for long-term de­vel­op­ment,” said Wang Huiyao, di­rec­tor of the Bei­jingCen­ter for China and Glob­al­iza­tion.

He said this has led to greater di­ver­si­fi­ca­tion in the in­dus­tries in­volved in China’s out­bound di­rect in­vest­ment, a new fea­ture in re­cent years.



Crew mem­bers ready for board­ing a train trav­el­ing along the China-built Ethiopia-Dji­bouti Rail­way in Ad­dis Ababa, cap­i­tal of Ethiopia.

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