China’s Outbound Direct Investment surges in the first 10 months of 2023

Display showing data.

China’s non-financial outbound direct investment (ODI) witnessed robust growth, increasing by 17.3 percent year on year to 736.2 billion yuan in the first 10 months of the year, according to official data released by the Ministry of Commerce. In U.S. dollar terms, the ODI reached 104.74 billion U.S. dollars during this period, marking an 11 percent increase from the previous year.

A notable highlight of the report is the surge in non-financial ODI in countries participating in the Belt and Road Initiative, totaling 181.69 billion yuan. This represents a substantial 27 percent year-on-year increase, underscoring China’s continued commitment and engagement in the ambitious infrastructure and economic development initiative.

The Ministry of Commerce also reported a noteworthy growth in the turnover of contracted projects overseas, which rose by 8.3 percent year on year to 856.88 billion yuan. This indicates a sustained momentum in China’s involvement in international projects, contributing to global economic development.

Several factors contribute to China’s remarkable ODI growth. The country’s strategic focus on expanding its global footprint, fostering international partnerships, and participating in large-scale infrastructure projects has played a pivotal role. Additionally, the Belt and Road Initiative continues to be a key driver, promoting connectivity and economic cooperation among participating nations.

China’s increasing ODI has implications beyond its borders, influencing global economic dynamics. As the country strengthens its economic ties with nations worldwide, the potential for mutually beneficial collaborations and shared economic prosperity becomes more evident

While China’s ODI growth is commendable, it is not without challenges. Economic uncertainties, geopolitical factors, and regulatory complexities pose potential obstacles. However, these challenges also present opportunities for China to adapt its strategies, enhance risk management, and further contribute to the stability and sustainability of the global economic landscape.

China’s non-financial outbound direct investment has experienced substantial growth in the first 10 months of the year, reflecting the country’s commitment to global economic engagement. The Belt and Road Initiative’s influence on ODI in participating countries highlights the significance of China’s role in shaping international economic cooperation.

This publication is part of China Insights by Media Scope Group, a source of reliable information on China, its economy, society and culture. Explore more insights or get in touch with our experts to get more detailed information.

Looking for one-stop shop to enter, operate and succeed in China? Learn about our China Connect solution.

This work by Media Scope Group OÜ is licensed under Creative Commons Attribution-ShareAlike 4.0 International.