China non-financial ODI hits eight-year high

China’s direct overseas investment in non-financial sectors in 2016 grew at its fastest pace since 2008, but analysts believe the expansion will lose steam this year as the government increases control over capital outflows. Total outbound direct investment (ODI) in non-financial sectors soared more than 40% year-on-year to $170.1 billion, according to a statement by the Ministry of Commerce on Monday. The amount of China’s ODI has continued to hit new highs since official data became available in 2002, as Beijing has encouraged companies to “go out” to acquire cutting-edge technologies and the energy and resources to power the country’s economic growth. ODI exceeded the foreign direct investment (FDI) China received for the first time in 2014. Last year, FDI was up 4.1% to 813.2 billion yuan, or $123 billion according to a Caixin calculation based on the average exchange rate in 2016.