Global EditionASIA 中文双语Français
Business
Home / Business / Macro

China outbound investment drops 29.4% in 2017

Xinhua | Updated: 2018-01-16 15:34
Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a bank in Beijing, China, March 30, 2016. [Photo/Agencies]

BEIJING - China's non-financial outbound direct investment (ODI) saw a drastic decline in 2017 amid government efforts to curb irrational investment overseas.

Chinese investors spent a total of $120 billion on 6,236 enterprises from 174 countries and regions last year, the Ministry of Commerce (MOC) said in a statement.

The year-on-year decline, at 29.4 percent for the whole of last year, narrowed from the 33.5-percent drop for the first 11 months.

Han Yong, an official with the MOC, said that "irrational outbound investment has been curbed."

In December alone, China's non-financial ODI increased 49 percent, tracking a gain of 34.9-percent in November.

No new projects were reported in property, sports or entertainment in the last two months.

China's ODI has seen rapid growth in recent years. However, noting an "irrational tendency" in outbound investment, Chinese authorities have set stricter rules and advised companies to make investment decisions more carefully.

In a document released in August, the State Council said overseas investment in areas including real estate, hotels, cinemas, and entertainment would be limited, while investment in sectors such as gambling would be banned.

In November, the National Development and Reform Commission, China's economic planning body, released a new draft rule on outbound investment, including stipulations on the investment activities of firms established overseas by domestic companies.

Investment in 2017 mainly went to leasing and commercial services, manufacturing, wholesale and retail, and information technology sectors.

Meanwhile, ODI to countries involved in the Belt and Road Initiative has been encouraged.

In 2017, China's non-financial ODI in countries involved in the Belt and Road Initiative totaled $14.36 billion, accounting for 12 percent of the total, up from 8.5 percent in 2016.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US