China’s overseas investment fell 10 per cent last year
China’s outbound direct investment fell 9.6 per cent to US$143.04 billion in 2018, amid growing curbs on money leaving the country, the Ministry of Commerce has announced.
This was the second successive drop in China’s outbound direct investment (ODI) after many years of breakneck growth. In 2017, ODI dropped by 19.3 per cent, the first decline in record. Indeed, as recently as 2016, the Ministry of Commerce (MOFCOM) reported record high ODI, of US$196.15 billion.
However, despite the Belt and Road Initiative, the cornerstone of President Xi Jinping’s foreign policy, encouraging Chinese companies to “go out”, the government has put the brakes on Chinese companies hoovering up real estate, hotels, cinemas, and sports clubs around the world.
Furthermore, with China’s relations with the West, including the United States and European Union, becoming increasingly strained, analysts have noticed “greater foreign hostility toward Chinese investment”.