— Shen Danyang, Spokesperson of the Ministry of Commerce

There are multiple factors behind the surge of outbound FDI, the most important one being market and internal drives. Policy guidance of the Chinese Government and improved investment climate in host nations has also played a role. Such a trend of fast growth will continue in the second half of the year.

From January to June, Chinese investors had directly invested in 2,912 overseas companies in 144 countries and regions, and total direct investment in non-financial sectors reached $45.6 billion, up by 29 percent year on year.Statistics show that outbound investment grew fairly rapidly in the first half of the year. The main reason includes four ways. First, investment in developed economies and emerging economies both grew robustly. It was a well-balanced picture. Second, large-scale mergers and acquisitions rose rapidly. Third, massive investment was made in a wide range of areas. Fourth, local businesses picked up pace in outward investment.

In terms of overseas mergers and acquisitions, roughly 30 percent of Chinese companies’ outbound investment is made by means of mergers and acquisitions. China National Offshore Oil Corp., through its overseas subsidiary, completed the $15.1 billion takeover of the Canadian oil company Nexen, which is the largest overseas takeover by a Chinese company so far.

In terms of areas of investment, four industries, namely, construction, scientific research and development and technology services, mining and real estate grew exponentially. Investment into construction reached $2.8 billion, up by 541 percent from the same period last year. Investment in mining, research and development and technology services, and real estate grew by 142 percent, 151 percent and 110 percent respectively. Investment into wholesaling and retail grew by 65 percent.

Provincial outbound investment grew by 27 percent from the same period last year. For example, Shandong Province’s outbound investment grew by 61 percent. Jiangsu Province has designated this year as the Year for Going International and reached a total investment of $1.44 billion, growing by 46.5 percent from the same period last year. The contractual value of overseas investment deals by companies from Zhejiang Province grew by 70.57 percent. Currently, provincial outbound FDI accounts for 31 percent of the national total and will continue to go up. In the past, outbound FDI was predominantly led by Central Governmentowned enterprises. Now more and more provincial business entities have come on board.

There are multiple factors behind the surge of outbound FDI, the most important one being market and internal drives. Policy guidance of the Chinese Government and improved investment climate in host nations has also played a role. The economic and social benefits of outward investment cooperation have become more pronounced, boosting the confidence of businesses. The brand name, influence and competitiveness of Chinese businesses in the world are on the rise. According to the latest findings of the Fortune magazine, 79 Chinese companies made their way into the Top 500 list and 52 Chinese companies were on the list of the Top 225 Contractors last year. Through localized operation, Chinese companies have helped train a large number of local staff, enhancing the capability for industrial upgrading and self-development in host countries. They are welcomed by host countries. We believe such a trend of fast growth will continue in the second half of the year.