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MOFCOM Department of Outward Investment and Economic Cooperation Comments on China’s Outward Investment and Cooperation in January-July 2019

In January-July 2019, Chinese domestic investors made non-financial direct investment in 4088 overseas enterprises in 153 countries and regions, with an accumulative investment of 432.92 billion yuan, up 3.3% year on year. The outward direct investment in July reached 68.06 billion yuan, up 25.5% year on year. In January-July 2019, the turnover of the accomplished contractual projects overseas amounted to 549.13 billion yuan, up 2% year on year and the total contractual value of the newly-signed projects was 820.1 billion yuan, up 1.9% year on year. The number of all kinds of laborers dispatched overseas for cooperation projects reached 265,000, almost the same as that of the same period of last year. At the end of July, the number of all kinds of laborers overseas was 972,000.

In January-July 2019, the outward investment and cooperation moved ahead stably, mainly presenting the following features:

First, investment and cooperation with countries along the Belt and Road routes were steadily advanced. In January-July, Chinese enterprises made additional investment of US$7.97 billion in 52 countries along the Belt and Road routes, accounting for 12.5% of the total amount of the same period. There were 36 mergers with countries along the Belt and Road routes, with an investment volume of US$1.38 billion. The contractual value of the newly-signed projects in the countries along the Belt and Road routes was US$72.26 billion, accounting for 59.9% of the total value of the same period; the turnover of the accomplished projects was US$ 44.5 billion, taking up 55.1% of the total amount of the same period.

Second, the structure of outward investment continued to be diversified. In January-July, outward investment mainly flew to leasing and commercial service industry, manufacturing industry, wholesale and retail industry and mining industry, taking up 30.7%, 18%, 10.1%, and 8.1% respectively. The outward direct investment flowing to the manufacturing industry and the information transmission/software and information technology services industry increased by 11.4% and 24.1%. There was no new outward investment project in the real estate industry, and sports and entertainment industry.

Third, there were many big contractual projects overseas, mainly in infrastructure construction, driving local development and realizing mutual benefits and win-win results. In January-July, there were 436 new outward contractual projects reaching the contractual value of over US$50 million, increasing by 18 over the same period of time last year and accounting for 83.5% of the total value of the newly signed contracts. Among the outward contracted projects undertaken by Chinese enterprises, the contractual value of infrastructure construction projects was US$97.72 billion, accounting for 81% of the total value of the newly signed contracts. By the end of July, China’s outward project enterprises have created 812,000 jobs for project countries.

In January-July, the relevant departments handled 2960 newly established and M&A outward investment enterprises, and China’s contractual investment reached US$62.05 billion. Among these, there were 2948 newly established and M&A non-financial outward investment enterprises, and China’s contractual investment reached US$60.88 billion. There were 12 newly established and M&A financial outward investment enterprises and China’s contractual investment reached US$1.17 billion. The relevant departments handled 740 capital increasing outward investment enterprises, and China’s contractual investment reached US$16.24 billion. Among these, there were 730 capital increasing non-financial outward investment enterprises, and China’s contractual investment reached US$14.44 billion. There were 10 capital increasing financial outward investment enterprises, and China’s contractual investment reached US$1.8 billion.