President Xi‬: China's Overseas Investment to Reach US$1.25 Trillion in Coming 10 Years

[TaiShang]

President Xi‬: China's Overseas Investment to Reach US$1.25 Trillion in Coming 10 Years

“In the coming decade, China's overseas investment will continue to grow and is forecast to reach US$1.25 trillion. This will provide more opportunities for China-UK cooperation.” said Chinese President Xi Jinping as he conducted a written interview with Reuters on Sunday, in advance of his state visit to Britain.

As to the state-subsidized, state-directed expansion of Chinese industry abroad, Xi said “this is what all governments are doing, and I think the Western countries are doing better than us. Even under market conditions, countries support the growth of their companies in various ways, and such measures should not be all labelled as government subsidy.”

He added that China’s system is different from that of Western countries. Due to historical reasons, Chinese companies perform many social functions, which are hard to measure with a simple arithmetic formula.

“The Chinese government supports Chinese companies in going global. But we believe that this process should be market-oriented with companies being the main driver. The role of the Chinese government is to secure and create a favourable political environment and a fair legal framework for Chinese companies. ”he said.

Chinese companies are expected to take a stake in the nuclear power plant in southwest England. This is in line with plans announced by Chinese government earlier this year to help Chinese firms in areas such as high-speed rail and nuclear power to expand overseas.

Xi pointed out that China has grown into a global manufacturing power, with particular strengths at the middle rung of the global industrial chain. Many Chinese industrial sectors and equipment making capacity, including the building of high-speed railway and nuclear power stations as well as automobiles making, are advanced and competitive internationally, and meet the demand and absorbing capacity of many countries.

“China is ready to pursue cooperation of various forms with the UK and other countries in international production capacity and equipment manufacturing to synergize our respective strengths and promote each other’s development. The Hinkley Point is the product of tripartite cooperation among China, the UK and France. I hope that the companies of the three countries will fully leverage their respective strengths to ensure the successful launch of this project and deliver benefits to the British people.” he said.

In terms of the opposition Chinese companies faced with, Xi stressed that it is normal for a company to encounter various problems when making investment, whether domestically or overseas. When doing business, one should focus on business. Problems that occur in business operations should not be politicized, and Chinese companies should not be viewed with bias.

“Competition is necessary for a business to grow, and no one will give away a market to its rivals. We hope that such competition is benign and market-based. There should be no swing doors or glass doors which are placed as non-economic or non-market-based barriers.”

He noted that unlike established multinational companies, Chinese companies still lack experience in making investment overseas. They need to better adapt to local laws and regulations, technological standards, marketing, human resources management rules, local cultures, etc.‬

Chinese President Xi: China's Overseas Investment to Reach US$1.25 Trillion in Coming 10 Years - People's Daily Online

 

[oproh]

Poor vietnam don't have a good investment climate and always trying to antagonize China, that is why they always misses on good economic opportunities.

 

[DaiViet]

Poor vietnam don't have a good investment climate and always trying to antagonize China, that is why they always misses on good economic opportunities.

there is U.S as replacement, better than China.

 

[TaiShang]

there is U.S as replacement, better than China.

Good luck with that.

US first has to compete with a city of China.

Hong Kong Overtakes The U.S. In FDI

 

[JSCh]

China Jan.-Sept. outbound direct investment surges
2015-10-15 05:33:47 GMT2015-10-15 13:33:47(Beijing Time)

BEIJING, Oct. 15 (Xinhua) -- China's non-financial outbound direct investment (ODI) continued to grow as companies capitalize on opportunities overseas, official data on Thursday showed.

China's non-financial ODI increased 16.5 percent year on year to 87.3 billion U.S. dollars in the first three quarters of 2015, the Ministry of Commerce (MOC) said on Thursday.

Foreign-contracted projects rose to 137.6 billion U.S. dollars during the January-September period, up 26.5 percent from last year. Accomplished turnover climbed 9.2 percent to 100.8 billion U.S. dollars, according to MOC.

The fast growth was led by the Belt and Road Initiative, a trade and investment project initiated by China. In the first three quarters, Chinese companies' ODI to countries along the Belt and Road jumped 66.2 percent to 12.03 billion U.S. dollars, accounting for 15.3 percent of total non-financial outbound investment. Singapore, Kazakhstan, Laos, Indonesia, and Russia were among the most popular investment destinations.

Zhou Liujun, head of the MOC Department of Outward Investment and Economic Cooperation, also attributed the rise to the progress in international production capacity cooperation, companies' growing desire to expand overseas as domestic profits wane, and a reduction in administrative approvals.

Zhou said he had also seen new trends in China's outbound investment. Investment by non-state-owned companies and local businesses, for example, rose 38.2 percent and 78.8 percent year on year respectively in the first three quarters, making them the main source of outbound investment.

Mergers and acquisitions overseas by Chinese enterprises totaled 20.18 billion U.S. dollars, accounting for 23.1 percent of total ODI. The number of new foreign contracted projects valued at more than 50 million U.S. dollars rose to 479, 63 more than last year. More contracts in financing and consulting indicated a smooth transition toward high value-added projects for Chinese enterprises, Zhou said.

China became a net capital exporter for the first time last year when ODI outnumbered foreign direct investment (FDI). ODI grew 14.1 percent in 2014, eclipsing the 1.7-percent FDI growth.

 

[Economic superpower]

China is now a big market, capital exporter, financier and technology provider.

 

[JSCh]

China still a strong driver of global economy
Updated: 2015-10-19 07:22
By WANG BAO'AN(China Daily)

LI FENG/CHINA DAILY​

Despite the uncertainties surrounding the world economy and the recent considerable fluctuations in global stock, foreign exchange and commodity markets, China has been maintaining steady growth, injecting confidence into the global economic recovery as an important locomotive of world growth.

China has proved a top contributor to world economic growth. Its annual average gross domestic product was 8.7 percent from 2009 to 2014, far higher than the 2.0 percent world average during the same period. Its contribution rate to world economic growth exceeded 30 percent during the period, 12 percentage points more than the 18 percent contributed by the United States.

China's economic growth has slowed after its entry into a new normal stage of growth. This is mainly the result of the country's accelerating economic restructuring and transformation to a services-led economic model, which has given new vigor to the nonpublic sector and promoted the booming development of newly emerging industries. The efforts to encourage business startups and innovations have also exhibited good momentum, and remarkable results have been achieved in energy saving and emissions reduction.

In 2014, China accounted for 13.3 percent of world economic aggregate, 4.1 percentage points up from the 2010 level. And despite facing increased slowdown pressures in the first half of this year, China's economy still contributed 30 percent to world economic growth, making it a stabilizer of the world economy.

China boasts not only the largest manufacturing factor but also the largest consuming population, which constitutes a prop for its robust import demands. From January to August, China's grain imports grew by 24.4 percent year-on-year and the import of copper ores and crude oil witnessed a rise of 12.1 percent and 9.8 percent respectively. So far, China is still a major destination for exports from Latin American and African countries. In 2014, China's combined imports from Asia, Africa and Latin America accounted for more than 60 percent of its total import volume and nearly 20 percent of the total exports from these regions.

Outbound visits and consumption by Chinese people have been growing, driving consumption growth and economic development in the tourist destinations. Chinese people made more than 100 million overseas visits in 2014 and such visits grew by 16 percent in the first half of this year from a year earlier. Overseas consumption by Chinese people has ranked the highest for three consecutive years, with the total value amounting to 1 trillion yuan ($157.5 billion) in 2014.

In the context of revaluation of the US dollar, the return of global capital to the US and thus reduced liquidity, a new round of outward investment enthusiasm has also been displayed by China. China's investment overseas was a record $123.1 billion in 2014, an increase of 14.2 percent from the previous year. Investment in the first eight months of this year accounted for $77 billion, increasing by 18.2 percent year-on-year. The lion's share of investment has flowed to Asian, African and Latin American countries and played a positive role in improving local infrastructure and enhancing local economic potentials. The government is also pushing forward the Belt and Road Initiative, which is expected to bring benefits to the countries and regions involved.

It is foreseeable that after China realizes the successful transformation and upgrading of its economy and realizes a shift from investment-driven to consumption-oriented growth led by the service sector rather than manufacturing, it will enter a healthier, better-quality and more sustainable development stage and so better serve as the engine for the world's economic growth.

The allegations by some in the past and at present that China is exporting deflation and recession are simply a new version of the "China's threat" fallacy. In an era of globalization and at a time when world economic recovery still faces arduous challenges, to jointly push for the return of the world economy should be a priority for all countries.

China is confident it can maintain its economic growth within a reasonable range and work with other countries to promote the inclusive and balanced development of the global economy.

The author is director of the National Bureau of Statistics. The article is an excerpt of a commentary that first appeared in People's Daily.