China is not just a magnet for foreign direct investment (FDI) inflows but is increasingly a source of such flows, says UNCTAD. The country´s outward investment flows exceeded $35 billion in 2002, reaching more than 160 countries. The driving forces behind this investment are access to natural resources, markets and the acquisition of strategic assets, including technology and brand names. The government´s encouragement of its enterprises to go abroad has also played a role. Bolstered by their strong financial reserves, Chinese enterprises are acquiring assets abroad to improve their competitiveness. They also rely on strategic alliances and joint ventures with established multinationals in their efforts to go international.
For more details, plese see the full report:
CHINA: AN EMERGING FDI OUTWARD INVESTOR [PDF, 10 pages, 191KB].