Investment of Chinese enterprises in overseas growth

February, 2015

According to the Chinese Vice Minister of Commerce, Zhang Xiangchen, overseas investment of Chinese enterprises will grow by 10% over the next five years.

The Deputy Minister for Commerce explains how the recent policy of the Dragon is part of an effort to reduce the accumulation of foreign reserves, helping Chinese companies to buy foreign resources and assets. This year, China's direct investment abroad should reach 120 billion dollars; however, based on future regulations, Chinese companies who want to invest abroad will enjoy a bureaucratic simplification, so will just have to record investments at the regional level. Also, will be deleted the requirements for the creation of offshore companies.
“It's just a matter of time that the country will become a net exporter of capital, namely that investments abroad exceed remittances home. If it will not happen this year it will be in the near future”.

Zhang Xiangchen

Chinese Deputy Minister for Commerce

Investments, especially in Europe, are expected to grow, especially in the areas of logistics, technology, infrastructure. Some analysts suggest that China may approve a new maneuver, not too aggressive, to stimulate the economy and reverse the slowdown in the growth of Gross Domestic Product, which is planned for this year to 7 percent. By target country of foreign direct investment, China is, therefore, also starting towards the consolidation of its role as an investor. Some scholars believe, indeed, that this is a phenomenon just begun, and as such still has wide margin for improvement. The stated aim of expanding investment abroad, coupled with the recent emergence of China as the first country for destination of foreign direct investment, draw attention of all on the centrality of the country in the world economic scenario.