Monday, May 9, 2011

China's Changing Investment Portfolio

Over at the Economix blog, David Barboza has a great post on shifting patterns of Chinese overseas investment. The takeaway: China is moving from a country that mainly attracts inward investment to one that is increasingly investing abroad.
On Friday, the English language newspaper, China Daily, quoted a senior Ministry of Commerce official saying that within three years China’s overseas direct investment would surpass its inbound foreign direct investment. The official said much of that investment would be directed toward the United States, Europe and Latin America.
That would be a major milestone, since China’s economic boom has been powered by decade by overseas companies investing in manufacturing and export-related industries here. Last year, China’s inbound foreign direct investment was about $100 billion, while outbound investments in the non-financial sector were about $59 billion.

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