The Ministry of Commerce announced that China ranked as the world’s fifth largest outbound direct investor in 2009, up from 12th place in 2008, with a total volume of US$56.5 billion, state media reported. In 2009 China’s ODI grew 1.1% year-on-year, contributing 5.1% of global ODI volume, but the dramatic change in the rankings was caused in part by the overall 40% decline in foreign investment by other countries. Investment in non-financial sectors was US$47.8 billion, up 14.2% year-on-year. According to ministry statistics, 13,000 Chinese firms invested in 177 nations around the world. The largest volume of funds went to the Asia-Pacific region, followed by Europe and Africa. However, China’s ODI into the US increased by 360%. Chinese ODI has grown for eight consecutive years, but MofCom does not believe the volume is large enough relative to the size of the Chinese economy. Liu Zuochang, director of MofCom’s investment promotion agency, said China’s non-financial ODI would likely reach US$60 billion this year.
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