Outbound direct investment
China's ODI in the high-tech and service industries had substantial growth from 2012 to 2016.
According to the National Bureau of Statistics, ODI into the health and social services sector increased by 90 times, from $5.38 million in 2012 to $487.19 million in 2016. Management of water conservancy, environment and public facilities climbed by 24 times. By contrast, ODI in the mining industry shrank by 85.7 percent in that period.
As a growing number of Chinese companies rush to invest overseas, the Chinese government raised concerns about the abnormal capital out-flow that could disrupt normal financial order.
Beginning in late 2016, the government has applied tighter supervision on Chinese companies' outbound investment activities, especially in areas like property, hotels and entertainment.
Several months later, unrestricted overseas investment was largely brought under control, official data showed. ODI increased by 34.6 percent year-on-year to $196.1 billion in 2016. But a year later, the figure was $120.1 billion, according to the National Bureau of Statistics.
In particular, the number of overseas merger and acquisition deals in the media and entertainment industry declined by more than half in the past year, according to data compiled by Reuters, China Venture and PwC, also known as PricewaterhouseCoopers.
By contrast, high-tech is the most active sector, with the number of such deals climbing by 18 percent year-on-year to 176 in 2017, the data show.
China continues to urge competent companies with reputations to expand their businesses in international markets while cautioning them to become more able to cope with risks, Zhong, the commerce minister, said at a news conference during the 13th NPC. [Special Coverage]
The country will continue to control what it deems irrational investment and require enterprises that make overseas investment to comply with local laws and regulations, Zhong said.
Overseas projects
Trade volume between China and economies involved in the Belt and Road Initiative climbed sharply from 2015 to 2017, from 5.94 trillion yuan to 7.4 trillion yuan ($940 billion to $1.2 trillion), according to the Ministry of Commerce.
Over the past three years, the number of newly established companies and enterprises in China increased by 78 percent as a result of direct investment from countries involved in the initiative, according to the National Bureau of Statistics.
Investment and merger and acquisition activities by Chinese enterprises in countries and regions involved in the initiative also have increased. According to PwC's report, from 2016 to 2017, the number of overseas merger and acquisition deals conducted by Chinese companies in the related economies has increased about sixfold from 22 to 135, with transaction values soaring from $2 billion to $21.4 billion.
The report forecast that in 2018, Chinese companies will continue to acquire businesses in the countries and regions involved in the initiative.
For example, China Merchants Port Holdings, a subsidiary of China Merchants Group, completed the acquisition of the second-largest container terminal in Brazil for $924 million in February.
"The centrally administrated State-owned enterprises are actively responding to the country's call to support the Belt and Road Initiative and have achieved tangible outcomes from the process," said Xiao Yaqing, the head of the State-Owned Assets Supervision and Administration Commission, who spoke with reporters on the sidelines of the first session of the 13th NPC.
"The initiative has provided many opportunities for countries and regions involved in the Belt and Road Initiative and the country will also open its economy to them," he said.
