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MOFCOM Department of Outward Investment and Economic Cooperation Comments on China’s Outward Investment and Cooperation in the First Quarter of 2019

On April 16, head of MOFCOM Department of Outward Investment and Economic Cooperation introduced China’s outward investment and cooperation in the first quarter of 2019.

In the first quarter of 2019, Chinese domestic investors made non-financial direct investment in 2060 overseas enterprises in 143 countries and regions, with an accumulative investment of US$25.21 billion, up 4.8% year on year in RMB. The outward direct investment in March reached US$9.55 billion, up 10% year on year. In the first quarter, the turnover of the accomplished contractual projects overseas amounted to US$33.06 billion, and the total contractual value of the newly-signed projects overseas was US$50.61 billion, up 13.5% year on year. The number of all kinds of laborers dispatched overseas for cooperation projects reached 111,000, increasing by 14,000. At the end of the first quarter, the number of all kinds of laborers overseas was 975,000, increasing by 4,000 over the same period last year.

In the first quarter, the outward investment and cooperation saw a stable start and maintained healthy and orderly development, mainly presenting the following features:

First, investment and cooperation with countries along the Belt and Road routes were actively advanced. In the first quarter, Chinese enterprises made additional investment in 49 countries along the Belt and Road routes, with a total amount of US$3.76 billion, up 4.2% year on year. The contractual value of the newly-signed projects in the countries along the Belt and Road routes was US$30.48 billion, accounting for 60.2% of the total value of the same period; the turnover of the accomplished projects was US$ 18.01 billion, taking up 54.5% of the total amount of the same period.

Second, cross-border mergers and acquisitions developed steadily. In the first quarter, Chinese enterprises implemented and accomplished 65 M&A projects overseas, covering 27 countries and regions like Kuwait, United Kingdom and Hong Kong (China) and involving 12 industries including manufacturing industry, mining industry, and finance industry. The actual transaction volume was US$3.63 billion, with the direct investment reaching US$2.35 billion.

Third, the structure of outward investment continued to be diversified. In the first quarter, outward investment mainly flew to leasing and commercial service industry, manufacturing industry, wholesale and retail industry, and mining industry, taking up 27.4%, 21.0%, 9.1% and 8.8% respectively. The outward direct investment flowing to the manufacturing industry and information transmission/software and information technology services increased by 37% and 18.6%. There were no new outward investment projects in the real estate industry, and sports and entertainment industry.

Forth, there were many large contractual projects overseas, driving local development and realizing mutual benefits and win-win. In the first quarter, there were 177 newly signed contracted projects overseas reaching the contractual value of over US$50 million, increasing by 19 over the same period of time last year and accounting for 83.2% of the total value of the newly signed contracts. The turnover of contracted projects overseas was mainly concentrated in power engineering construction and transportation construction industry, jointly accounting for 60% and effectively improving the infrastructure conditions of the host countries.

In the first quarter of 2019, the relevant departments handled 1043 newly established and M&A outward investment enterprises, and China’s contractual investment reached US$20.59 billion. Among these, 1039 newly established and M&A non-financial outward investment enterprises were handled, and China’s contractual investment reached US$20.08 billion. Four newly established and M&A financial outward investment enterprises were handled and China’s contractual investment reached US$510 million. The relevant departments handled 3 capital increasing financial outward investment enterprises, and China’s contractual investment reached US$100 million.