Since 2017, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping as its core, the Ministry of Commerce (MOFCOM) has firmly established the "four consciousnesses", comprehensively implemented the spirit of the 19th CPC National Congress, conducted an in-depth study of Xi Jinping thought on socialism with Chinese characteristics for a new era, implemented new concepts of development, adhered to the work keynote of seeking progress while keeping stability, took the construction of “Belt and Road” as the guidance and “Two Studies, One Action” as the driving force, comprehensively deepened reform, promoted business innovation, strengthened supervision and services, created favorable environment, effectively prevented risks, and realized a healthy and standard development in outward investment and cooperation.

1. Outward investment became more reasonable, and the industrial structure has been continuously optimized. In 2017, the outward direct investment reached US$ 124.63 billion, down 32% year on year. There were no new added projects of outward investment in the field of real estate, sports and entertainment industry. Non-rational outward investment was contained practically and effectively. The structure of outward investment has been continuously optimized, and M&A in chemical engineering, electric power, manufacturing and energy industry increased. The number of large M&A projects over US$ 100 million was over 60. The projects like China National Chemical Corporation’s purchase of Swiss pesticides and seeds enterprises ran smoothly. The outward investment of real economy and emerging industries further stood out.

2. Foreign contractual projects accelerated transformation and upgrading, driving the going out of equipments, technologies, services and standards to increase continuously. In 2017, the newly signed contracts of foreign contract projects reached US$ 265.28 billion, up 8.7% year on year. Relevant enterprises actively undertook projects in the field of electric power, chemical engineering, railroad and industrial equipments. Some large projects over US$ 10 billion like Malaysia's East Coast Rail and Meikarta Lippo city in Indonesia were signed successfully. The number of large projects whose contract volume was over 1 billion reached 400. The completed turnover was US$ 168.59 billion, up 5.8% year on year. The Gwadar port of Parkistan completed upgrading and expanded its operations, and the operation of Port hambantota of Sri Lanka was handed over. The construction and operating ability of the enterprises was enhanced continuously. The export of equipments and materials driven by foreign contract projects reached US$ 15.39 billion, up 15.7% year on year, higher than the increase of the export of goods in the same period.

3. The construction of overseas economic and trade cooperation zones was steadily promoted, and the quality and benefit stood out. Up to the end of 2017, there were 99 overseas economic and trade cooperation zones beginning to take shape. They were built by Chinese enterprises, with the accumulated investment of US$ 30.7 billion, and 4,364 enterprises entered the zones. The taxes and dues paid to the host country was US$ 2.42 billion, and created 258 thousand jobs locally. Newly added investment in 2017 was US$ 5.79 billion, and the output value created was US$ 18.69 billion. The investment construction and investment attraction of China-Belarus Industrial Park, Malaysia-China Kuantan Industrial Park and Suez Economic Zone in Egypt were promoted actively. The clustering effect of investment and the radiation effect of industry further came into play.

4. Construction of “Belt and Road” and International Capacity Cooperation were promoted, and large projects gained active progress. In 2017, China’s nonfinancial direct investment in countries along “Belt and Road” was US$ 14.36 billion, accounting for 12% of the total in the same period, 3.5 percentage points higher than that in the same period last year; the contract volume of the newly signed contract projects was US$ 144.32 billion, up 14.5% year on year with the proportion up to 54.4%. A batch of large projects was promoted positively, Ethiopia-Djibouti railway officially open, and China-Laos railway and the Colombo port city of Sri Lanka were constructed orderly. The demonstration effect of large projects was strengthened continuously.

5. Foreign labor cooperation developed orderly, offering assistance to overcome poverty. In 2017, a number of 522,000 laborers have been dispatched for foreign labor service and cooperation, 28,000 more than the number in the same period of the previous year. By the end of December, the number of laborers dispatched reached 979,000, increasing by 1,000 year on year. According to the preliminary statistics, the proportion of laborers dispatched from poverty-stricken country reached about 15%. Foreign labor cooperation played an active role in driving the economic development of poverty-stricken regions and helping the impoverished people in overcoming poverty and achieving prosperity.　　

In general, China’s outward investment and cooperation in 2017 enjoyed a healthy and standard development and played an active role in expanding import and export, cultivating competitive advantages of enterprises, promoting industrial transformation and upgrading, deepening economic and trade relation between China and the relative countries and improving the level of opening up. China is developing from a large country of outward investment to a strong country of outward investment.

The report of the 19th CPC National Congress sets forth innovating patterns of outward investment, promoting international capacity cooperation, forming a network of trade, investment and financing, production and service which faces the world, and speeding up to cultivate new advantages of international economic cooperation and competition. In 2017, MOFCOM focused on the following work.

1. Insist on implementing the major decision and deployment of the Central Party Committee and the State Council: take the lead to draft Several Opinions on Normalizing Operation Behaviors of Overseas Enterprises and Several Opinions on Improving the Security Work of Overseas Investment and Overseas Enterprises, which have been audited and passed in the 35th and 36th conferences by the reform leadership group of the national leadership, printed and distributed by the State Council. Carry out and implement the deployment of the State Council, reinforce the authenticity and review of the standardization of overseas investment. Together with the related departments, apply to the General Office of the State Council to forward the Guiding Opinion on Further Guiding and Standardizing the Overseas Investment Direction, carry out the legislative study of overseas investment, and complete the first draft of Overseas Investment Regulations.

2. Implement “management service” reform, deepen the overseas investment management reform with “recording as the major means and checking as the supplementary means.” 6172 overseas investment enterprises have been filed and approved in the year of 2017, including 6122 filed enterprises and 50 approved enterprises. Confer with the People’s Bank of China, SASAC, CBRC, CSRC, China Insurance Regulatory Commission and Exchange office to formulate the Interim Procedures of External Investment Filing (Approval) Report, promote and realize the uniform information attribution, classification, level-to-level administration and combined punishment for violation. Cancel the approval for the foreign contractual projects’ qualification and cancel the check for the project bidding(discussion), revise Foreign Contractual Project Management Ordinance and supporting regulation document, study the supervision system of establishing “recording+ negative list”, issue the Supervision Working Rules of “Double Random—Disclosure” for Overseas Investment Cooperation(Trial), carry out the spot check of “double randomness and Openness”, strengthen on the spot and afterwards supervision, standardize Macau labor management, carry out and standardize the special action of the market order of the dispatched labors overseas, comprehensively investigate and timely deal with illegal behaviors of the enterprises.

3. Speed up business innovation: formulate reform development scheme of overseas investment cooperation and innovative action plan of external investment. Design and implement international cooperation summit forum’s achievement of “One Belt and Road”, create the demonstrative project, promote “One Belt and Road” construction, formulate main targets and task measures for division of labor in International Capacity Cooperation Guide of the “13th Five-year Plan” in the State Council, issue the Key Work Points for Overseas Investment Cooperation in 2017 and Developmental Layout Guide for Overseas Economic Trade Cooperation Area(2016-2025), guide enterprises to implement the integration project of constructive operation, formulate the labor cooperation anti-poverty project scheme for overseas labor, and guide the assigned overseas enterprises to dock with national-level poverty-stricken counties.

4. Promote the implementation of major projects: Improve bilateral investment cooperation mechanism, sign 17 investment cooperation agreements with related countries and 3 long-term developmental projects in bilateral economic trade cooperation, confer with related departments to support major projects of international capacity cooperation, positively implement new measures in China-Africa cooperation forum, carry out overseas communicative coordination, speed up and promote a batch of major projects, railway. The traffic in Kenya and Inner Mongolia is completed, construct phase I of Pakistan-Gwadar free zone, and construct Sino-Thailand railway, Hungary-Serbia railway, and Angola Kaka hydropower station.

5. Strengthen the guarantee for service: construct the connective service platform of overseas enterprises and overseas
investment, dock nearly 1000 projects, reinforce information report, connective service and risk disposal of key enterprises and major projects, issue the Annual Statistical Bulletin of Direct External Investment, Cooperation Nationality(Regional) Guide for Overseas Investment, and Chinese External Investment Cooperation Development Report, organize policy training for external investment cooperation, compile the Guide for Overseas China-invested Enterprises and Personnel Safety Management, issue more than 20 overseas safety risk warning and remind messages, and coordinate with nearly 40 major emergencies.

With the constant development of Chinese reform and opening-up and rapid implementation of “One Belt and Road”, China further deepens the investment cooperation with various countries around the world. The overseas investment cooperation development meets numerous positive factors. In 2018, we will deeply implement the spirit of 19th National People’s Progress and the deployment of the central economic working conference; Guided by socialism with Chinese characteristics of Xi Jinping in the new era, following the Party Group of “strong politics and practical business operation”, focused on “One Belt and Road” construction, we make innovations on overseas investment mode, improve overseas investment quality and benefits, realize new development, new improvement and new breakthrough for overseas investment cooperation, make new contributions to China’s change from a big country of overseas investment power to a powerful country of overseas investment, help fully form the new pattern of comprehensive openness.

(All information published on this website is authentic in Chinese. English is provided for reference only.)