China’s accumulated outbound direct investment (ODI) reached over 1.8 trillion U.S. dollars by the end of 2017, moving up to the second place in the world rankings, according to an official report.

"China has made investment in 189 countries and regions globally, with its accumulated ODI accounting for 5.9 per cent of the world’s total,” said Zhang Xingfu, an official with the Ministry of Commerce (MOC). The report, published by the MOC, National Bureau of Statistics and State Administration of Foreign Exchange, also showed that China’s ODI reached 158.29 billion dollars in 2017 alone, ranking the third in the world, following the United States and Japan. However, the volume declined 19.3 percent year on year, falling for the first time since 2003. Chinese authorities have reinforced scrutiny of the authenticity and compliance of ODI since the end of 2016, especially of projects which were not about real economy or neglected environmental protection, energy consumption and safety.

Zhang said such scrutiny rendered investors more mature and rational, contributing to the upgrading structure in ODI. Chinese companies will continue to invest overseas, said Zhang, adding that China wishes to achieve mutual development with host countries and people and to foster global economic growth. In addition, Chinese outbound investment saw diverse industrial layout, according to the report.

Investment in six sectors accounted for 86.3 per cent of the country’s accumulated ODI, namely, sectors of leasing and business services, wholesale and retail, software and information technology service, finance, mining, and manufacturing. Chinese investment in both Europe and Africa saw an over 70-percent increase in 2017, with the former reaching a new record high to 18.46 billion U.S. dollars, said the report. During the same period, investment in countries along the Belt and Road accounted for over 12 per cent of China’s ODI, up 31.5 per cent year on year.

Xinhua