China’s outward investment and economic cooperation in January-November

In January-November 2015, China’s outward investment and cooperation maintained a sound development momentum. The direct investment overseas maintained a rapid growth of double digit rates, and is expected to surpass the growth goal of the whole year by 10%. The construction of overseas economic and trade cooperation zones, infrastructure construction and foreign contract projects showed their own remarkable strength. The number of large scale projects increased obviously. China has entered into the stage of capital export and industry export. All of these strongly supported the construction of “Belt and Road” and the international capacity cooperation. Official from the Department of Outward Investment and Economic Cooperation of MOFCOM pointed out that China’s outward investment and economic cooperation in January-October has the following characteristics:

1. Direct Investment overseas saw rapid growth and the industrial patterns were constantly optimized.

Firstly, the growth was rapid. In January-November, the nonfinancial direct investment overseas reached US$ 104.13 billion, up 16% year on year. Secondly, the scale for the covered sectors was wide. The direct investment overseas covered almost all the industries of the national economy. Thirdly, the growth of manufacturing industry was rapid. The investment flew to the manufacturing industry was US$ 11.8 billion, up 95.4% year on year. Among these, the investment flew to the equipment manufacturing industry was US$ 5.89 billion, up 117.3% year on year. Fourthly, the construction of overseas economic and trade cooperation zone became the highlight. At present, there are 75 cooperation zones in total whose construction the Chinese enterprises are promoting, driving the investment by almost US$ 18 billion, and attracting about 1,141 enterprises to enter in to the zones. The cooperation zones are distributed in 34 countries, 21 of which are SCO members.

2. Infrastructure construction became the highlight of cooperation with large scale projects increasing obviously.

In January-November, the newly signed contract value of China’s foreign contract projects reached US$ 163.03 billion, up 1.3% year on year; China’s foreign contract projects have gained breakthrough in transportation, electric power projects and communication engineering with the newly signed contracts reaching US$ 92.1 billion, accounting for about 60% of the total of the newly signed contracts. Among these, 342 projects were over 100 million, 40 more than that of the same period of last year.

3. Bilateral cooperation gained practical promotion, and the growth of regional and country projects was strong.

In January-November, China’s direct investment to ASEAN was US$ 9.13 billion, up 109.9% year on year; 1,381 contract projects were newly signed with the contract value US$ 28.4 billion, up 41.2% year on year. The direct investment to the U.S. hit the new record, with the value reaching US$ 7.187 billion, up 54.9% year on year. Investment to SCO was US$ 2.71 billion, up 37.6% year on year. The contract value of the newly signed contract projects with Oceania was US$ 2.53 billion, up 73.3%, and that with Angola was US$ 8.57 billion, 3.6 times that of the same period of last year.

He also pointed out that, in the first eleven months of this year, China’s outward investment and cooperation has a sound overall situation, which was mainly attributed to the following factors:

Firstly, the leading role of “Belt and Road” strategy was prominent. With the continuous promoting of the strategy of “Belt and Road”, more and more countries expressed their strong wills for strengthening investment and cooperation with China. In the first 11 months, the Chinese enterprises have made direct investment to 49 countries along the “Belt and Road”, with the investment volume totaling US$ 14.01 billion, up 35.3% year on year. In the same period, Chinese enterprises signed 2,998 contracts of foreign contract projects with 60 countries along the “Belt and Road”, with the contract value reaching US$ 71.63 billion, accounting for 43.9% of the total newly signed contract volume of foreign contract projects, up 11.2% year on year. The accomplished turnover reached US$ 57.33 billion, accounting for 44.1% of the total of the same period, up 6.4% year on year.

Secondly, the international capacity cooperation was accelerated. With the optimizing of China’s industrialization, the accelerating of the industrialization of developing countries and the re-industrialization of developed countries, the integration of China’s economy with the economy of other countries was even closer. Even more Chinese capital, technology and equipment entered into the international market. In the first 11 months, China’s international capacity cooperation enjoyed a strong growth. The export value of the large-sized complete sets of equipment was up 10% year on year. The direct outward investment of the manufacturing industry reached US$ 11.8 billion, up 95.4% year on year, accounting for 11.33% of the total outward investment in the same period.

Thirdly, the enterprises were active in transformation and upgrading. Affected by the cost raise of domestic production factors, the enterprises’ will for going out was even stronger. The enterprises were transforming and upgrading actively through various outward investment and cooperation. Outward investment has developed from setting trading companies overseas to getting integrated in international innovation network, setting R&D centers overseas or carrying out investment in high and new technology and advanced manufacturing through M&A. Foreign contract projects have broadened from civil construction to the fields of high value added like engineering procurement construction, project financing, designing consultation and operation maintenance and management. All of these have become the new engine of the rapid development of outward investment and cooperation.

Fourthly, business environment has been optimizing. The Ministry of Commerce (MOFCOM) constantly promoted outward investment facilitation and carried out the management mode of filing. MOFCOM actively built the platform for outward investment and cooperation, and signed related agreements with the countries. MOFCOM practically promoted major projects, and conducted the construction of industrial partner, outward economic and trade cooperation zone, infrastructure construction and connectivity with related countries. MOFCOM also strengthened investment and financing support and implemented the policies like preferential credit, project financing and export insurance. MOFCOM optimized the public service platform of going out, providing heart to heart services to the enterprises. MOFCOM also strengthened the risk prevention abroad, in order to safeguard China’s interest overseas.




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