In 2010, China exceeded Japan for the first time in outward FDI, as well as in gross domestic product. [UNCTAD.org]

China ranks the fifth-largest outbound direct investor last year, according to the World Investment Report of the United Nations Conference on Trade and Development (UNCTAD).

Developing Asia (excluding West Asia) set new records for FDI inflows and outflows in 2010.

Outflows from China increased by more than $10 billion and reached historic highs of $68 billion.

In 2010, China exceeded Japan for the first time in outward FDI, as well as in gross domestic product.

The top four investing nations and regions are the United States, Germany, France and Hong Kong.

FDI to East Asia rose to $188 billion, thanks to double-digit growth in inflows to China and Hong Kong (China).

Inflows to China climbed by 11 per cent to $106 billion. China continues to experience rising wages and production costs, so that the trend in widespread offshoring of labour-intensive manufacturing to the country has slowed and FDI inflows are shifting towards high-technology industries and services.

The report showed China's ODI grew by 17 percent over the year to $68 billion, but statistics by the Ministry of Commerce said China's ODI in 2010 surged by 36.3 percent year-on-year to $59 billion.

Mergers and acquisitions played a vital role.

In 2010, China came fourth internationally in volume of overseas deals made through M&A, with the figure reaching $29 billion, following the US, Japan and the UK. This accounts for 43 percent of China's total last year, China Daily reported.

Much of China's ODI has gone to the Asia-Pacific region, with the remainder going to Latin America, Africa and the European Union.