Jan-July non-financial ODI up 52.8%

BEIJING -- Chinese companies sped up their overseas investment activities during the first seven months of this year to ward off the current global economic slowdown, according to data released by the Ministry of Commerce on Thursday.

China's outbound direct investment in non-financial sectors soared 52.8 percent year-on-year to $42.22 billion in the January-July period, accelerating from the 48.2-percent increase seen in the first half of this year, MOC spokesman Shen Danyang said at a press conference.

The spokesman attributed the rapid ODI growth to national measures encouraging Chinese companies to go global, the restructuring of the world economy and the heightened competitiveness of Chinese enterprises.

"Chinese companies have very good market opportunities now and can be more aggressive in going global with a changing world economy," Shen said.

The country's $42.22-billion ODI went to 2,407 overseas enterprises in 117 countries and regions in the period, with 56.8 percent of the entire ODI flow to the commercial service industry, 15 percent to the mining sector, 10 percent to the wholesale and retail sector and 7.8 percent to manufacturing, according to the spokesman.

Analyzed by geographical regions, the Chinese mainland's investments in Hong Kong, countries of the Association of Southeast Asian Nations and the United States posted growth of 67.7 percent, 36 percent and 29.6 percent, respectively, according to MOC data.

China invested $1.03 billion in the European Union in the first seven months, up just 1.2 percent from a year ago, while Chinese investment in Russia inched up only 0.2 percent to $204 million.

The country's ODI in Australia and Japan, however, plunged 43 percent and 25.7 percent, respectively.

In response to US Assistant Secretary for Economics and Business Affairs Jose W. Fernandez's calls for more Chinese investment in the US earlier this month, Shen said the Chinese government supports Chinese companies to invest in the US, but noted some "non-economic factors" have undermined Chinese investment enthusiasm after some merger and acquisitions applications were turned down by the US side.

"To boost confidence among Chinese companies (to invest in the US), we hope the US side can treat Chinese investments in an objective and rational way and create a sound environment for our enterprises," he added.

As of the end of July, China had an accumulated overseas investment of $364.3 billion in non-financial sectors.

According to the MOC, the accomplished turnover of China's overseas-contracted projects amounted to $58.83 billion in the January-July period, up 14.5 percent year-on-year.