China outbound investment leaps to record high in Dec
Having been the world's largest recipient of foreign direct investment over the last decade, China has begun to return the favor.
Chinese non-financial ODFI totaled $14.7 billion in December and $24.7 billion in the fourth quarter, Ministry of Commerce data released on Wednesday showed. That is up from $17.1 billion in the third quarter and $15.5 billion in the fourth quarter of 2011.
The most recent monthly and quarterly totals are the highest since MOFCOM began publishing quarterly data in 2009 and monthly data in 2010.
December was also the first month on record in which outbound FDI exceeded inbound FDI. Non-financial inbound FDI was $11.7 billion in December, down from $12.2 billion in December 2011.
For full-year 2012, OFDI was $77.2 billion, up from $60.1 billion in 2011 and only $12 billion in 2005. Inbound FDI was $111.7 billion, down from 2011's record high of $116.0.
Analysts say rising labor costs and slowing growth have decreased China's attractiveness as a destination for FDI. Countries like Vietnam and India are now the preferred markets for many investors to establish low-wage manufacturing bases. At the same time, authorities have supported Chinese companies to invest abroad as part of their decade-old "go out" policy designed to develop national champion firms that can compete with Western multi-nationals.
There was no breakdown given
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