China’s direct overseas investment is estimated pass US$60 billion within five years, according to reports from the Ministry of Commerce (MOFCOM). By the end of 2004, China had invested US$44.8 billion in 149 countries and regions, and the amount is rising by 22 percent a year as China continues to make efforts to integrate intself into the global economy, increase influence abroad, and control strategic resources.
Government statistics show that in the first nine months of 2005, China invested US$5.1 billion overseas, up 138 percent on the same period in 2004. 80 percent of the investments were via mergers and acquisitions.
In 2004 Latin America overtook Hong Kong as the leading recipient of direct investment from the mainland, accounting for 49.3 percent of total investment in the first 11 months of the year. Asia accounted for 28.6 percent, and Europe 16.4 percent.
Most of China’s overseas investment has gone into the mining sector (55.1 percent). Other targets include commercial services (19.3 percent), manufacturing (14.9 percent), and wholesale / retail (5 percent).
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