China: Outbound Investments Totals US$ 183 Billion

September 9, 2009

Chinese Outbound Investments Pudong

The current economical situation may be hard to tackle for some, but for others it does present a multitude of new opportunities. According to a report published by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange yesterday, Chinese outbound investments mounted to an impressive US$ 183.97 billion by the end of last year, with net overseas investments for 2008 totaling US$ 55.91 billion.

For Chinese outbound investments this means an impressive growth of 111% compared with the previous year.

After a main revision of regulations for Chinese overseas direct investment (ODI) issued by China’s Ministry of Commerce’s (MofCom), the new rules for overseas investments by Chinese companies introduced in May with the introduction of MofCom’s “Administrative Measures for Outbound Investment” makes it significantly more easy for Chinese companies to invest abroad.

Before the amendment and the revisions, most deals required approval from MofCom, with the few exceptions that if the investment or acquisition was conducted in some selected countries and with a total investment volume of less than US$ 10 million, the approval process could be done on a provincial level. Approval processes that can be conducted at provincial level are far more convenient for the companies and parties involved than the more complicated and effort taking approval processes at central level in Beijing.

The new regulations now makes everything a lot easier for Chinese companies who wish to invest abroad. While major investments of over US$ 100 million still require approval from central level in Beijing, namely by MofCom, mid-sized investment from US$10 million to US$100 million can be authorized on a provincial level.

For outbound overseas investments of less than US$10 million the company applying can now simply fill out an online application form. So far Chinese investors have set up more than 12.000 companies in 174 countries.

Due to the current global economical setting, asset prices worldwide are falling and this is creating good opportunities for Chinese investors in many sectors. Also, many countries are loosening restrictions on foreign investment and increase their efforts to promote investment and attract foreign capital in order to stimulate the domestic economy.

With official figure stating that Chinese overseas enterprises employ about 1.03 million people, including 455.000 overseas employees, we sincerely hope that this new and booming trend of Chinese outbound investments will also create a multitude of new opportunities for companies, entrepreneur and also employees worldwide.

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{ 2 comments… read them below or add one }

1 kandisdomkowski.hatenablog.com June 11, 2017 at 05:39

great post, very informative. I ponder why the
opposite specialists of this sector don’t understand this.
You should continue your writing. I am sure, you’ve a huge readers’ base already!

2 foot pain after sitting June 21, 2017 at 19:16

I drop a comment whenever I especially enjoy a article on a website
or if I have something to add to the conversation. It’s a result of
the sincerness communicated in the article I read. And on this post China:
Outbound Investments Totals US$ 183 Billion. I was actually excited enough to drop a thought
;-) I actually do have some questions for you if it’s okay.
Could it be just me or do a few of these responses appear
like left by brain dead folks? :-P And, if you are writing on additional places, I would like to keep up with you.
Would you make a list all of your community pages like your
Facebook page, twitter feed, or linkedin profile?

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