China
Trends in China’s Outbound Investment: Key Sources, Destinations, and Sectors
In the first eight months of 2024, China’s overseas direct investment (ODI) reached RMB 789.45 billion, a 12.5% annual increase. China’s ODI covers 189 countries, with significant investments in Asia, particularly Hong Kong, and diverse sectors like leasing and construction.
According to data from China’s Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE), in the first eight months of 2024, China’s total ODI reached RMB 789.45 billion, a year-on-year increase of 12.5 percent in yuan terms (US$110.99 billion in dollar terms, up 10.6 percent). Chinese investors made non-financial direct investments in 6,762 overseas enterprises across 151 countries and regions, with a total investment of RMB 669.24 billion, up 14.3percent (US$94.09 billion in dollar terms, up 12.4 percent).
This jump followed the already high ODI record in 2023. In 2023, China’s ODI flow reached US$177.29 billion, an increase of 8.7 percent from the previous year, accounting for 11.4 percent of the global total. China has ranked among the top three globally for 12 consecutive years (following the United States and Japan) and has held over a 10 percent share of the global total for eight consecutive years. By the end of 2023, China’s ODI stock stood at US$2.96 trillion, maintaining its position among the top three globally for seven consecutive years.
The investment sectors remain diverse—in 2023, China’s ODI spanned 18 sectors of the national economy. Investments in leasing and business services, wholesale and retail, manufacturing, and finance accounted for nearly 80 percent of the total for the year. Investments in the construction industry and the information transmission/software and information technology services sectors grew rapidly, with growth rates of 97.2 percent and 34.9 percent, respectively.
In this article, we delve into China’s 2023 ODI data and navigate the major trends and dynamics in China’s ODI landscape.
By the end of 2023, China’s ODI spanned 189 countries and regions, covering 80.8 percent of the globe. The distribution highlights key areas of focus across different regions.
In Asia, China had an investment stock of US$2,014.84 billion, making up 68.2percent of its global total. The majority of this was concentrated in Hong Kong (87 percent of China’s investments in Asia), with significant investments also in Singapore, Indonesia, Macao, Vietnam, Malaysia, Thailand, and Laos.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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