China's outbound FDI grows 8.7% in 2023

Amid a global downturn in foreign direct investment (FDI) in 2023, China recorded a robust 8.7 percent year-on-year growth in outbound FDI, with a 31.5 percent surge in investment directed towards Belt and Road Initiative (BRI) countries, signaling a steady and resilient trend in China's international investments, according to the Ministry of Commerce (MOFCOM) on Wednesday.

This growth is underpinned by the ongoing optimization of China's outbound FDI structure, coupled with continued strides in quality and efficiency, Zhang Li, director general of the Department of Outward Investment and Economic Cooperation of MOFCOM, told a press conference.

Zhang noted that these developments are not only bolstering multilateral, high-quality investment cooperation within the BRI framework but also fostering a more advanced, opening-up Chinese economy.

In 2023, China's outbound FDI flow accounted for 11.4 percent of the global share standing at $177.29 billion and solidifying its status among the world's top three investors, and the total scale of its outbound allocations has also ranked among the top three globally for seven years in a row, data from the ministry showed.

This achievement stands out against the backdrop of a faltering global economic recovery, as worldwide FDI fell by 2 percent in 2023, with cross-border mergers and acquisitions plummeting to a decade-long low.

Of note, China's outbound FDI in BRI countries skyrocketed by 31.5 percent in 2023, hitting $40.71 billion, with strong inflows into various sectors such as manufacturing, construction, wholesale, retail, and electricity, according to the ministry.

Outbound investment in Asia and Africa also recorded impressive gains in 2023. Investment to Asia rose by 13.9 percent year-on-year, while allocations to Africa soared to $3.96 billion, more than doubling last year's output, reflecting the growing momentum of South-South Cooperation.

In the face of rising global uncertainties, China is revving up its collaboration with developing countries, uncovering new avenues for win-win partnerships.

On Tuesday, the 21st China-ASEAN Expo and the China-ASEAN Business Investment Summit were held in Nanning, Southwest China's Guangxi Zhuang Autonomous Region, where both sides committed to speeding up the building of vital economic corridors and key projects, as well as expanding trade and investment potential.

Earlier in September, the highly watched China-Africa Cooperation Forum summit culminated in the Beijing Declaration, which focused on strengthening investment cooperation across multiple sectors to build a community with a shared future for China and Africa.

China's outbound investment, rooted in the principles of mutual benefit and win-win cooperation, is emerging as a powerful engine fueling growth in the global economy.

As of 2023, around 430,000 employees are working across 48,000 Chinese enterprises operating abroad, with local hires making up 60 percent of this workforce, per the data from the ministry.

Projects in countries participating within the BRI encompass not only major landmark infrastructure ventures but also numerous "small and beautiful" initiatives that significantly bolster local economic growth and improve livelihoods.

China remains steadfast in its commitment to strengthening connectivity and ushering in a new decade of accelerated development for the BRI, with a sustained focus on refining outbound investment structure while assisting partner nations in high-quality development, Zhang said.