China's ODI mounts to $170.11 billion last year

China's non-financial outbound direct investment (ODI) increased 44.1 percent year on year to USD 170.11 billion last year as the world's second largest economy began investing its over USD 3.05 trillion forex reserves abroad. Chinese companies invested in 7,961 overseas enterprises in 164 countries and regions in the past year, Ministry of Commerce said. Beijing is also giving a major thrust to Chinese President Xi Jinping's Silk Road initiative. The Belt and Road (Silk Road) initiative was a strong boost to cooperation between Chinese and foreign firms, state-run Xinhua news agency reported. Outbound investment to countries involved in the initiative totalled USD 14.53 billion in 2016 Han Yong, an official with the commerce ministry said. Chinese companies have especially paid attention to the real economy and emerging industries for outbound investment, said Han. Up to 18.3 percent of the ODI went to manufacturing in 2016, up from 12.1 percent in 2015. Meanwhile, Chinese companies carried out 197 overseas mergers and acquisitions (M&A) in the manufacturing sector last year, accounting for 26.6 percent of the total. In the same period, 12 percent of China's total ODI was invested in information transmission, software and information technology services, and 109 overseas M&A deals related to the sector were announced by Chinese firms. Han said overseas M&A had facilitated China's economic restructuring and industrial upgrading. In December alone, the country's ODI declined 39.4 percent from the same period of 2015 to 8.41 billion US dollars, according to the ministry. Chinese regulators are also looking out for potential risks brought by "irrational tendencies" amid rapid outbound investment growth and are examining irregularities in such investments, an official with China's top economic planner said last week.