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China’s outbound investment set to jump

August 10,2017

   
   

CHINESE outbound investment flows may hit US$1.5 trillion over the next 10 years, as key Chinese policies will underpin future overseas investment, a report said on Tuesday.

China’s outbound investment is set to grow 70 percent over the next 10 years from a total of US$880 billion from 2007 to 2016, predicted the report published by global law firm Linklaters LLP.

The outbound investment and acquisitions from China will continue to be a significant force in the coming years, as China’s long-term policies and initiatives such as “Made in China 2025” and the Belt and Road Initiative have outbound deals at the core, the report said.

The “Made in China 2025” strategy, a roadmap released by the State Council in 2015 to guide the country’s advanced industrial manufacturing, has seen steady progress in industrial capability, smart manufacturing, innovation, as well as product quality and branding.

Proposed by China in 2013, the Belt and Road covers the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and aims to build a trade and infrastructure network linking Asia, Africa and Europe along ancient Silk Road trade routes.

The report said such initiatives mean the high level of outbound investment is likely to focus on sectors such as energy infrastructure and high-end technology and electronics, which may be seen by host governments as “strategic” to national security or national interest.