China investment overseas to top $ 50 b

Monday, 27 December 2010 00:36 - - {{hitsCtrl.values.hits}}

BEIJING: Chinese investment abroad is expected to top 50 billion dollars this year as the country pumps more money into overseas energy, mining and agricultural projects, state media reported on Friday.

China — which is expected to receive 100 billion dollars in foreign direct investment this year, up 11 percent on year — wants domestic companies to spend more money overseas to help reduce trade frictions, the China Daily said.

That goal also fits with Beijing's stated aim of reducing the country's heavy reliance on investment within its borders to drive its economy, now the second-largest in the world.

Non-financial outward direct investment — not including investment by banks, insurers and securities firms — is likely to exceed 50 billion dollars compared with 43.3 billion dollars last year, Commerce Minister Chen Deming was quoted as saying.

China was the world's fifth-largest investor in terms of outward direct investment in 2009, the report said.

Investment overseas is expected to grow 10 percent year-on-year in 2011, the report said.

The gap between inward and outward investment is likely to close over the next five years as authorities make it easier for Chinese companies to invest abroad, vice commerce minister Yi Xiaozhun was quoted as saying.

The commerce ministry is expected to release guidelines next year that will help Chinese companies make the right investment choices abroad, it said.