China's ODI increases 11.4% in first four months

China’s outbound direct investment (ODI) grew by 11.4% on a yearly basis to USD43.9 billion during the first four months of the year, while the total contract value of newly-signed overseas projects reached CNY463.93 billion, up 1.2% on a yearly basis, during the same period, according to China's Ministry of Commerce (MOFCOM). In addition to investing in traditional sectors, such as manufacturing, agriculture and infrastructure projects, China’s ODI in scientific research and technical services, transportation, residential services, healthcare and other areas increased during the four-month period, said MOFCOM Spokesman Gao Feng. Chinese companies’ investment in manufacturing and IT industries rose 23.5% and 23.2% on a yearly basis to USD5.72 billion and USD2.44 billion, respectively, data from the Ministry showed.

“China’s growing ODI in high-end manufacturing, healthcare and innovative businesses in overseas markets is likely to lead a new round of ‘going global’ for domestic companies,” said Ren Xingzhou, Research Fellow of the Institute for Market Economy at the Development Research Center of the State Council. China’s ODI in economies involved in the Belt & Road Initiative (BRI) rose 14% on a yearly basis to USD5.96 billion, accounting for 17.4% of the total capital invested in global markets between January and April. Apart from SOEs, Chinese companies from the private sector have also been making notable progress in overseas markets this year. Hisense Home Appliances Group Co spent CNY1.3 billion in March this year to buy a 75% stake in Saden Holdings Co, a Japanese company that makes compressors for air conditioners. This is a further step in the company’s going global strategy, as well as gaining more high-end technologies, Hisense said in a statement, as reported by the China Daily.