Seventy percent of overseas Chinese enterprises are "in the
black," according to an investigation conducted by the Ministry of
Commerce, the China Business News reported
today.?
Statistics from a bulletin compiled by the Ministry of Commerce,
the National Bureau of Statistics, and the State Administration of
Foreign Exchange show that China's outbound foreign direct
investment (FDI) reached US$21.16 billion in 2006.?
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The country's FDI to financial sectors reached US$3.53 billion last
year, accounting for 16.7 percent of the total, while the FDI to
non-financial sectors was up 43.8 percent year on year to US$17.63
billion, representing 83.3 percent.?
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"We expected the country's outward investment to reach US$60
billion during the 11th Five-Year Program period (2006-10). Now we
believe the actual figure will be much higher than that," said Chen
Lin, deputy director of the ministry's foreign economic cooperation
department.?
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Meanwhile, the ministry's 2006 statistics suggest overseas
non-financial Chinese enterprises' sales revenues totaled US$274.6
billion, and they paid US$2.82 billion in taxes.
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Domestic investment firms realized a total import and export value
of US$92.5 billion through overseas firms they invested
in.?
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According to the investigation, roughly 40 percent of China's
outward FDI was carried out through mergers and acquisitions.
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Businesses services, mining, finance, retail and wholesale sectors
accounted for 70 percent of the nation's outward FDI last year.
Meanwhile, 90 percent of China's non-financial outward FDI went to
Asia and Latin America. Of that 90 percent, China's Hong Kong
Special Administrative Region, Cayman Islands and British Virgin
Islands received 81.5 percent.?
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China's outward investment provided over 200,000 jobs for people in
foreign countries last year.
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As of the end of 2006, more than 5,000 local investment entities
had established nearly 10,000 overseas firms in 172 countries and
regions.
(China Daily September 17, 2007)
