China's Outbound Direct Investment Establish 44,000 Overseas Enterprises in 2019
Source: Global Times Published: 2020/9/16
More than 27,500 Chinese investors had established about 44,000 overseas enterprises in over 80% of countries and regions in 2019, new government data showed on Wednesday.
China's ODI amounted to $136.9 billion in 2019, down 4.3 percent year-on-year, still making it the world's second-largest outward investor after Japan, according to a report released by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.
By the end of last year, China's accumulative outbound foreign direct investment (ODI) reached $2.2 trillion, ranking 3rd in the world following the US and the Netherlands, according to the report.
Chinese ODI covers 188 countries and regions, while the investment in countries and regions along the Belt and Road Initiative (BRI) saw steady growth. Between 2013 and 2019, China's accumulative investment in BRI countries and regions stood at $117.3 billion.
China's ODI is diversified, with about 80 percent in the services sector including leasing and business services, wholesale and retail and finance.
Chinese direct investment in other countries and regions made a great contribution to the host countries' tax income and employment. In 2019, Chinese enterprises overseas generated profits or balanced financial results. They paid taxes worth $56 billion in countries and regions they operate and hired 2.27 million foreign employees.
Dong Dengxin, director of the Finance and Securities Institute at the Wuhan University of Science and Technology, estimated that the country's ODI may drop 20 percent year-on-year under the impact of the global pandemic and geo-political factors.
"The US has been increasingly sensitive to Chinese companies' acquisitions overseas, because of which some deals may be delayed or abandoned," Dong told the Global Times, adding that China's ODI may stand at around $100 billion this year.
During peak years of 2016-17 when Chinese enterprises rushed to buy real estate like hotels overseas, China's ODI reached around $160 billion, according to Dong.
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