China non-financial FDI into US soars by 235%, into Australia by 188%, from Jan-April

BEIJING - Data from China’s Ministry of Commerce shows that China’s nonfinancial outbound direct investment to the United States soared by 235.7% during the January-April period from the same period a year ago, confirming Chinese investors’ increasing appetite for US companies. Australia was another major destination for Chinese outbound investment, jumping 188.1% year-on-year.

The China Daily reports that analysts have identified numerous driving forces behind the trend, including the US market’s “mature market infrastructure” and “sound legal system”, in addition to the access to high-tech companies.

Following a record US$8.39 billion of Chinese ODI in the US last year, many economists are saying this trend is likely to continue for some time: A recent report by the non-profit organisation, the National Committee on US-China Relations, and research firm Rhodium Group, predicts that 2016 will be another record year for Chinese investments in the US, with “the desire to gain access to the explosion of technological innovation, as well as the urge to tap the growing spending power of domestic middle-class consumers by investing in tourism and hospitality.”

The January-April 2016 period also saw 89.3% ODI growth in Hong Kong and 21.5% in the ASEAN countries. However, Chinese investment in the European Union decreased 44.8% from the same period last year, which analysts are pinning to rising protectionism in the EU. www.webershandwick.cn (ATI).