2012 China direct investment overseas

The Ministry of Commerce (MOFCOM) of China, the National Bureau of Statistics (NBS) and the State Administration of Foreign Exchange (SAFE) jointly released on August 30 the Statistical Communiqué of 2012 on China Direct Investment Overseas, making public officially the annual data on China direct investment overseas in 2012. The communiqué was composed of six parts: Overview of China direct investment overseas; Characteristics of China direct investment overseas; Chinese investment to major economies, mix of investors, investors by industry and region and comprehensive statistics.
According to the communiqué, the main features of China Direct Investment overseas in 2012 are as follows:
Firstly, investment flow increased against trend, and hit a record high. China direct investment overseas hit a record high of US$ 87.8 billion in 2012, up by 17.6% year-on-year, while global direct investment fell by 17%as compared with that of 2011, and has become one of the three largest economies around the world in terms of FDI.
Secondly, investment made exceeded US$500 billion, while there still exists a big gap compared with that of the developed countries. As of the end of 2012, the net amount of China direct investment overseas totaled US$ 531.94 billion, ranking 13 in the world. However, due to the late start of China direct investment overseas as compared with that of the developed countries, China’s investment made was equivalent only to 10.2% of that of USA, 29.4% of UK, 34.4% of Germany, 35.5% of France and 50.4% of Japan.
Thirdly, China’s investment covered over 80% of the countries and regions around the world, with a high degree of concentration. As of the end of 2012, 22,000 enterprises have invested overseas(hereinafter referred to as overseas enterprises) was established by over 16,000 domestic investors in 179 countries and regions, covering 76.8% of countries and regions in the world, covering 95.7% of the areas in Asia, 85.7% in Europe and 85% in Africa. As the end of 2012, China’s FDI saw a high degree of investment concentration, and the investment made in top 20 destinations totaled US$ 475.093 billion, accounting for 89.3% of the total.
Fourthly, industries that China made investment are in a wide range, with a high degree of concentration. As of the end of 2012, China’s DI covered all industries of national economy, with investment made over US$ 10 billion in such industries as leasing and commercial services, financial services, mining, wholesale and retail, manufacturing, transportation / logistics, postal services and construction, and total direct investment made in the said industries amounted to US$ 491.3 billion, accounting for 92.4% of China’s total direct investment made
Fourthly, mergers and acquisitions (M&A) covered a wide range of fields, trading value are large. In 2012, DI transactions by Chinese firms reached 457, with the value of US$ 43.4 billion, both hitting a record high. Of which DI was US$ 27.6 billion, and financing overseas was US$ 15.8 billion, accounting for 63.6% and 36.4% respectively.
Sixthly, investment in USA saw a rapid growth, while investment in Virgin Islands and Cayman Islands declined significantly. In 2012, China’s DI in USA reached US$ 4.048 billion, up by 123.5% year-on-year, and USA has become the second largest DI destination for Mainland after Hong Kong. In 2012, China’s DI in Virgin Islands and Cayman Islands amounted to US$ 3.067 billion, down by 72.5% as compared with that of 2011 which were US$ 11.145 billion.
Seventhly, overseas enterprises made a significant contribution to tax revenue and employment of the host country, with a remarkable win-win result in investment overseas. Total taxes paid by overseas enterprises to the invested country in 2012 were over US$ 22.16 billion, and employees in overseas enterprises totaled 1.493 million by the end of 2012, of which 70.9 million were foreign employees, with 89,000 employees from the developed countries.
Source: http://english.mofcom.gov.cn/article/newsrelease/significantnews/201309/20130900298867.shtml


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