Despite perceived rise of de-globalization, China’s outbound investment has maintained a strong momentum over the last year and reached a record-high level, according to the annual Bluebook Report released by the Center for China and Globalization on Nov. 23, 2016 in Beijing.
The book, entitled “Chinese Enterprise Globalization Report 2016”, was jointly published by CCG and the Social Science Academic Press (China). It is the 3rd edition of the Bluebook Report series launched since 2014. The new book, composed of six chapters, summarizes the current situation and trends of the outbound investment worldwide in 2015. Based on nearly 3,000 case studies, it also reveals the features of and the challenges faced by Chinese enterprises going abroad. Moreover, the report provides a number of policy recommendations on how to implement the “One Belt, One Road” initiatives and how to address the challenges in the global expansion of Chinese enterprises.
Based on CCG’s self-established evaluation system that includes five sets of indicators and self-collected data about 300 China-based multinational companies, the new book puts forward five ranking lists of Chinese enterprises going global, such as “Top 50 Chinese companies going global” and the “Top 50 emerging Chinese Companies Going Global.”
According to CCG’s research, global outbound investment has regained momentum last year and reached the highest level since 2009 at $1.76 trillion, at an annual growth rate of 38 percent. Among all, Asia, Europe and North America are the most popular destinations. In terms of sectors, service industry has received over 64% of the total FDI around the world, followed by 27% in manufacturing industry.
With regard to outbound investment mode, M&A is still the most preferable approach, with total transaction of US$721 billion in 2015, or 67% higher than that of 2014. Greenfield investment has also grown moderately at 8%.
In the meantime, the report also finds that Chinese companies invested a record $145.6 billion abroad last year, continuing a trend of growth over the past decade. China has seen a net outflow of capital for the first time, surpass Japan to become the second largest source of foreign investment in the world. China's investment is concentrated in Asia, Europe and North America, especially its investment in the United States has surpassed US investment into China.
In addition, China’s investment is flowing into a greater variety of sectors, from energy and manufacturing to high-tech, real estate and cultural industry. The report believes that the policy incentives and financial support are the main reasons for China’s outbound investment growth.
The report believes that the Belt and Road Initiatives will create more impetus for Chinese companies to invest abroad and improve outbound investment both in quantity and quality.