CGTN:

How do you see the change of China's outbound investment in 2017? And what's the government's attitude toward China's outbound direct investment? What kind of policies will it take as the next step?

Wang Chunying:

Thanks for your questions. Last year, the overall growth of China's outbound direct investment (ODI) is slower than before, with an improved structure and steady use of foreign exchange. On the one hand, we believe that domestic companies' ODI has returned to rationality. According to the statistics, the ODI that China's non-financial business made in 2017 dropped by 29.4 percent to US$120.1 billion, equivalent to that of 2015, demonstrating that the growth in 2016 was irrational. And it registered positive growth in November and December. The statistics also showed that ODI capital used in foreign exchange purchasing decreased 12 percent from 2016.

Furthermore, the ODI structure has further improved. According to the Ministry of Commerce, the main sectors of China's ODI were rental and commercial services, retail and sales, manufacturing and information transmission, as well as software and IT services. The proportion of ODI in these sectors was 29.1 percent, 20.8 percent, 15.9 percent and 8.6 percent. No new investment projects were made in the real estate, sports and entertainment sectors. New investments in countries along the "Belt and Road" accounted for 12 percent of the total, rising 3.5 percentage points from 2016.

In conclusion, China's investments overseas slowed with steady growth last year, and the momentum will be maintained in 2018.

Wang Chunying:

The Chinese government has a clear management principle regarding the policies of direct outbound investment. In August 2017, the National Development and Reform Commission (NDRC), the Ministry of Commerce, the People's Bank of China and the Ministry of Foreign Affairs jointly issued a Notice on Further Guidance and Regulation of Outbound Investment, clarifying the categories of outbound investments which are encouraged, restricted and banned. Last December, the NDRC released the Management Methods of Enterprises' Outbound Investments, which will come into effect in March. The institutional framework for regularized management has taken shape.

The SAFE will act in accordance with the latest policies and requirements of the authorities in charge of outbound investment to guide enterprises' "going out" in a stable and orderly manner. We remain committed to encourage enterprises to participate in international economic competition and cooperation, and integrate themselves into the global industrial and value chain. We have insisted on the principle of market-oriented operation following the international convention in which enterprises serve as the main player and government as the guide. We have continued with the reform to streamline administration, delegate powers, enhance regulation where necessary and provide better services. 

In detail, we support capable domestic enterprises to conduct authentic and qualified outbound investments, and to participate in the "Belt and Road" construction and international industrial-capacity cooperation, thus, to promote the transformation and upgrading of the domestic economy and deepen the win-win cooperation between China and other countries. In addition, we remain committed to deepening reform while guarding against risks. We have kept a close eye on irrational outbound investments in some sectors and potential risks during the investment process, urged banks to strictly follow operational principles, and strengthened the examination of investment authenticity and its compliance with relevant regulations, so as to promote the sustainable and sound development of direct outbound investment and safeguard national economic and financial security. All in all, the SAFE has worked consistently with relevant policies. 

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