The patterns of China's overseas direct investment are changing rapidly, says HSBC's chief regional economist, Qu Hongbin.
He notes that investors started with raw materials but, having moved on to infrastructure and manufacturing, are now focusing on big-name consumer brands and high-tech companies.
Chinese direct foreign investment, once dominated by large state-owned enterprises in search of iron ore and copper, now features private-sector giants buying U.S. film studios and European fashion houses, alongside state-backed companies snapping up new technology firms.
Non-financial direct investment abroad by China grew 54 per cent in the first nine months of 2016 to $134 billion, surpassing the $121 billion for the whole of the previous year.
This was driven by the “One Belt, One Road” initiative to recreate the ancient Silk Road – the overland and maritime trading route connecting Asia and Europe.
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Patrick Burnson, Executive Editor
Patrick is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].
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