Chinese outbound direct investment posted its first ever decline in 2017 on the back of tighter capital controls and a crackdown on the overseas acquisitions sprees of cash-flush tycoons.
China could pour as much as USD$10 trillion into infrastructure projects for its much-vaunted Belt and Road initiative over the next four to five years, according to the chairman of China Minsheng Bank.
Nations participating in Xi Jinping’s much-vaunted Belt and Road initiative have seen a surge in Chinese mergers and acquisitions despite efforts by Beijing to stifle capital outflows.
The latest official data points to a plunge in overseas real estate investment by Chinese investors for the first half of 2017.
Sources cited by Reuters say that China’s central government plans to intensify official curbs on foreign acquisitions as well as funding from banks for such deals.
China’s Ministry of Commerce is touting its success in curbing “irrational” outbound foreign investment in the first half of 2017.
Europe is drawing more foreign direct investment from China than the United States due to political sensitivities and security concerns.