Chinese outbound foreign direct investment for the first ten months of the year has plunged by over 40% compared to the same period in 2016.
The latest figures from the Ministry of Commerce indicate that Chinese outbound FDI to 5410 overseas enterprises in 160 different countries and regions totalled USD$86.31 billion for the period from January to October of 2017, for a year-on-year plunge of 40.9%.
Following the wild acquisitions spree of cash-flush Chinese investors in 2016, Beijing launched a crackdown on “irrational” forms of investment in the real estate, entertainment and personal fitness sectors.
According to the Ministry of Commerce the latest figures indicate that “irrational foreign investment” has been effectively contained, while the Chinese government continues to drive steady increases in capital flows to One Belt One Road nations.
China invested a total of $11.18 billion in 53 One Belt One Road countries during the period from January to October, comprising 13% of the outbound FDI total, for an increase of 4.7 percentage points compared to the same period last year.