China’s non-financial outbound direct investment (ODI) increased by 44.1 percent year on year to $170.11 billion in 2016. Chinese companies invested in 7,961 overseas enterprises in 164 countries and regions last year, according to China’s Ministry of Commerce.
The One Belt and One Road Initiative provided a strong boost to cooperation between Chinese and foreign firms. Outbound investment to the countries involved in the initiative totaled $14.53 billion in 2016, said Han Yong, an official at the commerce ministry.
Up to 18.3 percent of the ODI went to manufacturing in 2016, up from 12.1 percent in 2015. Meanwhile, Chinese companies carried out 197 overseas mergers and acquisitions (M&A) in the manufacturing sector last year, accounting for 26.6 percent of the total.
In the same period, 12 percent of China’s total ODI was invested in information transmission, software and information technology services, and 109 overseas M&A deals related to the sector were announced by Chinese firms.
In December alone, China’s ODI declined by 39.4 percent year on year to $8.41 billion, according to the commerce ministry.