China's profile as an outward investor

The attention focused on Chinese outward foreign direct investment (COFDI) is especially high now given the recent 15th China International Fair for Investment & Trade (CIFIT) in Xiamen, Fujian, and the China-Africa Investment Cooperation symposium that was held concurrently.

However, the greater interest in COFDI is fundamentally a result of China's dramatically changing profile as an outward investor. Annual COFDI flows rose from $12 billion in 2005 to $68 billion in 2010 according to a world investment report by the United Nations Conference on Trade and Development (UNCTAD). At present, China is the world's fifth largest outward foreign investor, above Japan and the United Kingdom.

However, there are many anxieties about COFDI, which is often seen as a "harbinger of doom". Specific worries include the impact of COFDI on the developing world, Chinese dominance over supplies of resources, the displacement of local businesses, increased unemployment, and the stripping of technology from acquired firms. Furthermore, some feel Chinese companies abroad are insufficiently attentive to the environment, workers and local customs.