China outbound investment surge reinforces growth confidence

BEIJING - China's overseas nonfinancial investment during the first 10 months of 2015 surged 16.3 percent year on year, hailed by many as a stabilizer of world economic growth.

The mainland made around 589.2 billion yuan ($95.21 billion) in outbound direct investment (ODI) during the period, covering 5,553 companies across 152 countries and regions, data released by the Ministry of Commerce (MOC) showed on Monday.

ODI projects covered a wide range of fields including transportation, residential construction, electric power engineering, telecommunication and petrochemical industries.

Belt & road initiative

"The China-proposed 'Belt and Road' initiative, which is designed to improve transnational connections via transportation networks, contributed a lot to the ODI increase, showing China's efforts to power global economic growth," said Zhang Shuyu, a researcher with the University of International Business and Economics.

In the first 10 months, ODI in 49 nations along the Belt and Road totaled $13.17 billion, up 36.7 percent year on year. Top investment destinations were Singapore, Kazakhstan, Laos, Indonesia and Russia.

Meanwhile, new foreign-contracted projects in 60 countries along the route rose to $64.55 billion, up 21.6 percent from last year, accounting for 43.3 percent of China's overseas projects.

The distribution of surplus industrial equipment to countries in need, waning domestic profits fueling a desire to expand overseas, and the slashing of red tape have combined to make China the world's top capital exporter, Jiang Wenbin, deputy head of the MOC department of outward investment and economic cooperation, said.

China became a net-capital exporter for the first time last year, when ODI surpassed foreign direct investment (FDI). ODI grew 14.1 percent in 2014, eclipsing the 1.7-percent growth recorded for FDI.

Growing confidence

"The ODI data provides fresh evidence that President Xi Jinping's remarks are not baseless," said Zhang, referring to comments by the president on Sunday that China had the confidence and capability to maintain medium-high growth, transmitting "Chinese confidence" to the world.

When addressing the G20 summit in Antalya, southwest Turkey, Xi said China's confidence comes from its determination and commitment to press ahead with reform and build an open economic system.