China's outbound investment totaled US$5.65 billion in the first
11 months of this year, indicating the nation has intensified its
role as global investor for the second consecutive year.
The number was three times the investment outlaid during the
period last year, January to November. But due to PC maker
acquisition of IBM last December, the total outbound investment for
2004 leapt to US$5.5 billion, jumping 93 percent over the year
before.
A statement released yesterday by the Ministry of Commerce
reported that China, long a hot-spot for global investment, is
itself emerging as a global investor.
Although the outbound investment remains relatively small
compared to the country's inward foreign direct investment (FDI) of
US$53 billion, China is steadily increasing its investment in the
world, the official said.
Attracting the most investment from Chinese firms were the
information and telecom industries, and the mining and
manufacturing sectors?-- with combined investment totaling 90
percent of the January to November figure.
Asia remains the largest destination for Chinese investment,
accounting for two-thirds of the investment in the first 11 months
of 2005.
But investment in North America, Africa and Oceania is
accelerating, with all destinations registering a year-on-year
growth of more than 80 percent.
Investment cases with a US$10 million value represent more than
60 percent of the total outbound investment from January to
November.
In fact, compared with small and medium-sized counterparts,
large-scale Chinese companies are showing a stronger inclination to
launch and increase their volume of overseas investment, according
to an earlier survey by the China Council for the Promotion of
International Trade (CCPIT).
About 23 percent of surveyed companies expressed intent to
increase outward investment, either substantially or moderately,
within the next 12 months.
The survey revealed this figure will increase to over 40 percent
in two to five years.
Sun Bosheng, a foreign investment researcher from the Chinese
Academy of International Trade and Economic Cooperation, said the
Chinese Government is strengthening its guidance of outward
investment. He explained that application procedures are being
simplified and services improved to better facilitate outward
investment.
For instance, in May the Ministry of Commerce established a
reporting mechanism for overseas mergers and acquisitions. Once
informed of a merger intention, the ministry provides the Chinese
firm with relevant data, including the policies, regulations and
investment environment of the target countries.
Meanwhile, according to the Ministry of Commerce, from January
to November Chinese contractors signed more than US$25 billion
worth of overseas projects. That's a 20 percent increase over last
year.
(China Daily December 27, 2005)