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(II) Outward investment of China

The year 2015 saw a strong recovery in global FDI, with global FDI outflows totaling US$1.47 trillion, up by 11.8% year-on-year. In the face of the complex and changing international situation, the Chinese government actively promoted the Belt and Road Initiative and international capacity cooperation, and constantly sped up the facilitation of outward investment. Chinese enterprises were more and more motivated to go global. In 2015, China achieved a historic breakthrough in

OFDI and hit a record high of US$145.67 billion, ranking second in the world for the first time and exceeding the foreign investment attracted into China during the same period. China became a net capital exporter for the first time.

Overview

In 2015, China’s net OFDI (hereinafter referred to as "flow”) stood at US$145.67 billion, up by 18.3% year-on-year, including US$96.71 billion of new equity investment, 66.4% of the total; US$37.91 billion of reinvested earnings, 26% of the total; and US$11.15 billion of investment with debt instruments, 7.6% of the total.

As of the end of 2015, up to 20,200 Chinese investors13 set up 30,800 overseas enterprises through OFDI14 (hereinafter referred to as overseas Chinese enterprises) in 188 countries (regions).15 At the end of 2015, the total assets of overseas Chinese enterprises amounted to US$4.37 trillion, the accumulated net amount of OFDI (hereinafter referred to as “stock”) amounted to US$1,097.86 billion, including US$471.51 billion of equity investment, 43% of the total; US$442.78 billion of reinvested earnings. 40.3% of the total; and US$183.57 billion of investment with debt instruments, 16.7% of the total. The composition of China's OFDI flow and stock in 2015 are shown in Table 1.8.

The financial OFDI flow in 2015 totaled US$24.25 billion, up 52.3% year-on-year, including OFDI in monetary and financial services (previously known as the banking sector) up to US$16.4 billion, 67.6% of the total.

By the end of 2015, the stock of financial OFDI stood at US$159.66 billion, including US$97.13 billion in monetary and financial services, 60.8% of the total, US$2.19 billion in the insurance industry, 1.4% of the total, US$6.8 billion in capital market services (previously known as the securities industry), 4.3% of the total, and US$53.44 billion in other financial services, 33.5% of the total.

Table 1.8 Composition of flow and stock of China’s OFDI in 2015

Type

Flow

Stock

Amount (USS100 million)

Year-on-year growth (%)

Share (%)

Amount (US$100 million)

Share (%)

Financial

242.5

52.3

16.6

1,596.6

14.5

Non-financial

1,214.2

13.3

83.4

9,382

85.5

Total

1,456.7

65.6

100

10,978.6

100

Notes

Financial investment refers to the investment directly made bj’ Chinese investors into overseas financial enteipnses. Non-financial investment refers to the investment directly made by Chinese investors into overseas non-financial enterprises.

The difference between the data of non-financial flow in 2015 and the data in the Gazette of the Ministry of Commerce of China in 2015 (US$118.02 billion) is mainly caused by the difference m reinvested earnings.

As of 2015, China’s state-owned commercial banks16 opened 79 branches and 57 affiliated bodies in 42 countries and regions such as the United States, Japan and the United Kingdom, with 47,000 employees, including 45,000 foreign employees, 95.7% of the total. By the end of 2015, China had set up seven insurance institutions overseas.

In 2015, China's non-financial OFDI stock totaled USS121.42 billion, up 13.3% year-on-year; the revenue from sales of overseas enterprises amounted to USS1,386.3 billion, down 11.7% from the previous year; the imports and exports of Chinese investors through overseas enterprises totaled USS313.2 billion, including imports totaling USS204.5 billion, a year-on-year decline of 39.5%, and exports totaling USS 108.7 billion, down 1.4% from a year earlier. At the end of 2015, the non-financial OFDI stock stood at US$938.2 billion, and the total assets of overseas Chinese enterprises was USS2.44 trillion.

In 2015, the total amount of various taxes paid by overseas Chinese enterprises to the recipient countries (regions) of the investment amounted to USS31.19 billion, an increase of 62.9% year-on-year. At the end of the year, the total number of employees in overseas Chinese enterprises was 2,837,000, of which 1,225,000 were foreign employees, accounting for 43.2% of the total, an increase of 392,000 from the end of 2014.

 
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