china’s investment abroad · inbound and outbound foreign direct investment in china, 2003-2015...

China’sInvestmentAbroad

Mo4va4onsforFDIAbroad

•  PersistentCurrentAccountSurpluses•  MaturityofLeadingChineseEnterprises•  StrategicBusinessConsidera;ons–GlobalSupplyChainandcompe;;veConsidera;ons

•  ValueChainUpgrade•  StrategicResourceRequirements•  EnhancementofInnova;onCapacity

217-01-12

Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.48

ChinaintheGlobalEconomy:ShareofGlobalTotal

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hVp://economists-pick-research.hktdc.com/business-news/ar;cle/Research-Ar;cles/China-Takes-Global-Number-Two-Outward-FDI-Slot-Hong-Kong-Remains-the-Preferred-Service-Pla]orm/rp/en/1/1X000000/1X0A804W.htm

Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015

ChinaasthemostImportantemergingeconomyinvestor

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.3

Diagramsource:AliciaGarcia-Herreroet.al.,Chinaoutboundforeigndirectinvestment:Howmuchgoeswherea<er

round-trippingandoffshoring,BBVAWorkingPaper,June2015.

HowChinahasInvested:2013

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.12

Top10Des4na4onsofChina’sFDI(USDmillion),2009-13

Source:hVp://economists-pick-research.hktdc.com/business-news/ar;cle/Research-Ar;cles/China-Takes-Global-Number-Two-Outward-FDI-Slot-Hong-Kong-Remains-the-Preferred-Service-Pla]orm/rp/en/1/1X000000/1X0A804W.htm

hVp://economists-pick-research.hktdc.com/business-news/ar;cle/Research-Ar;cles/China-Takes-Global-Number-Two-Outward-FDI-Slot-Hong-Kong-Remains-the-Preferred-Service-Pla]orm/rp/en/1/1X000000/1X0A804W.htm

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.2

InboundandOutboundForeignDirectInvestmentinChina,2003-2015(USDbillion)

Diagramsource:AliciaGarcia-Herreroet.al.,Chinaoutboundforeigndirectinvestment:Howmuchgoeswherea<erround-trippingandoffshoring,BBVAWorkingPaper,June2015.

ChinaasaNetCreditortotheWorld

SlowTransi;onAwayfromSOEs

Source:ChinaBusinessInsight,TUSAID,February2013,p.4

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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.17

RisingImportanceofPrivateEnterprisesinChina’sFDI

Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015

Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015

STOCKOfFDI:ResultofFDIflowsover4me

Source:ChinaBusinessInsight,TUSAID,February2013,p.917-01-12 17

China-CanadaBilateralDirectInvestment

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Energy74%

Mining23%

Finance0%

Greenenergy2%

Misc.1%

Other3%

Distribu4onofChineseFDIbySector(2005-2012)

Source:Companies’newsreleases

Sectoraldistribu4onofChineseinvestmentinCanada

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WhathasChinaInvestedin?

Source:ChinaBusinessInsight,TUSAID,February2013,p.8

M&Adealshavehighunitvalue

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Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.18

ChineseFDIintheUS,200-2001(MillionsofUS$&numberofDeals)

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Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.44

ChineseFDIbyEntryMode,CaliforniaVs.US,2000-1011

Averageinvestment$2.3million

AverageInvestment$23million

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Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.45

AverageSizeofChineseInvestments,CaliforniaVs.US,2000-2011

Mostlysmallopera4ons&startupsInICTfields

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Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.43

ChineseFDIintheUSbyFirmOwnership,2000-2011

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Source:JohnLarum&JingminQian,ALongMarch:TheAustralia-ChinaInvestmentRela;onship,AustraliaChinaBusinessCouncil,Oct2012,p.7

China’sOverseasFDITransac4onSuccessRate

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AdifferenttrendinCanada??

ReturnsofChineseFDI:AustraliaasaCaseStudy

Returnshavebecomeanimportantcriterion

Source:JohnLarum&JingminQian,ALongMarch:TheAustralia-ChinaInvestmentRela;onship,AustraliaChinaBusinessCouncil,Oct2012,p.9

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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.18

MainRiskFactors&ChallengesinChina’sFDIFlows

17-01-12 29Source:Accenture,GrowthJourneys:HelpingAsianCompaniesRealizetheValueofTheirInterna;onalExpansionStrategies,2013,p.14

ExternalChallengesFacedbyAsianCountriesinInterna4onalExpansion

KeyconcernsforChinaFDIOverseas

regulatory,businessandculturalenvironments

TrendtowardDiversifica4on

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.6

FromEnergytoDiversifica4on

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.14

TrendtowardDiversifica4on:TheCaseofChina’sFDIintheUS

Source:JohnLarum&JingminQian,ALongMarch:TheAustrali-ChinaInvestmentRela;onship,AustraliaChinaBusinessCouncil,Oct2012,p.9

ChineseOverseasFDIinAustraliaandOtherCountriesbySectorJan2005-2012,ForInvestmentoverUS$US

IstheAustraliaExperienceaguideforCanada?

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Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015

Datafrom2013

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.10

China’sForeignM&ADeals:EnergyandMining

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.19

NumberofChineseM&AinEuropebySectorin2014(2013)

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.7

China’sForeignM&ADeals:Technologies,Media&Telecommunica4ons

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.11

China’sForeignM&ADeals:RealEstate,HospitalityandConstruc4on

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.7

China’sOverseasM&ADeals:AgricultureandFood

Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.5

OneBeltOneRoad:InvestmentOpportuni4es