China’s ODI Grows 44.1% in 2016

China’s non-financial outbound direct investment (ODI) soared 44.1% YoY to US$170.11 billion (RMB1.13 trillion) in 2016, with the fund absorbed by 7 961 foreign firms in 164 countries and regions, the Ministry of Commerce of China announced on January 16, 2017.
For December 2016 alone, the nation’s ODI tumbled 39.4% YoY to US$8.41 billion, or RMB55.86 billion.
In 2016, combined turnover of overseas projects undertaken by Chinese companies increased 3.5% YoY to US$159.42 billion, and newly signed overseas contracts were valued at US$244.01 billion, up 16.2% from a year earlier.
The nation’s ODI to countries involved in the “Silk Road Economic Belt and the 21st-Century Maritime Silk Road” initiative was US$14.53 billion. Newly signed contracts for projects in such countries amounted to US$126.03 billion, accounting for 51.6% of the nation’s total.
Around 18.3% or US$31.06 billion of China’s total ODI was used in the manufacturing sector in 2016, up from 12.1% in 2015. And 12% totaling US$20.36 billion was invested in the information transmission, software and information technology service sector, up 4.9% year on year. As for the sector of scientific research and technical services, the ODI totaled US$4.95 billion.
Seven hundred and forty-two overseas mergers and acquisitions (M&A) were conducted by Chinese companies in 2016, amounting to US$107.2 billion in 73 countries and regions.
Chinese local enterprises posted ODI of US$148.72 billion in 2016, supporting 87.4% of the nation’s total ODI, up 66.7% .