China’s ODI nearly halves in first six months
August 7, 2017 Category Foreign investment, Weekly
China’s outbound direct investment (ODI) nearly halved in the first half from a year ago amid efforts to contain irrational investment, the Ministry of Commerce (MOFCOM) said. Non-financial ODI in the first half fell 42.9% year-on-year to CNY331.1 billion as irrational outbound investment had been effectively controlled, Qian Keming, Vice Minister of Commerce, said. Government measures, including tighter verification of the authenticity and compliance of overseas investment projects, were introduced late last year to prevent illegal capital flow overseas disguised as investment. Last year, ODI surged 58.7% in the first half and 44.1% for the whole year. “ODI into offshore manufacturing industries fell less than that into the real estate, cultural, sports and entertainment sectors,” Qian said. “We encourage authentic deals that are compliant with domestic rules and laws, international practices, and market principles. We especially encourage projects along the Belt and Road initiative,” Qian added. Investment in countries along the Belt and Road initiative edged down only 3.6%. In addition, revenue from China’s foreign engineering contracts rose 7.2% to CNY462.2 billion. But Long Guoqiang, Deputy Director of the State Council’s Development Research Center, said that Chinese companies will continue to make overseas investments as they enter a more advanced stage of development, the Shanghai Daily reports.
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