china’s investment abroad · inbound and outbound foreign direct investment in china, 2003-2015...
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China’sInvestmentAbroad
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Mo4va4onsforFDIAbroad
• PersistentCurrentAccountSurpluses• MaturityofLeadingChineseEnterprises• StrategicBusinessConsidera;ons–GlobalSupplyChainandcompe;;veConsidera;ons
• ValueChainUpgrade• StrategicResourceRequirements• EnhancementofInnova;onCapacity
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Source:DanielRosen&ThiloHanwmann,ChinaDirectInvestmentinCalifornia,AsiaSociety,2012,p.48
ChinaintheGlobalEconomy:ShareofGlobalTotal
17-01-12 3
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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
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Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015
ChinaasthemostImportantemergingeconomyinvestor
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.3
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Diagramsource:AliciaGarcia-Herreroet.al.,Chinaoutboundforeigndirectinvestment:Howmuchgoeswherea<er
round-trippingandoffshoring,BBVAWorkingPaper,June2015.
HowChinahasInvested:2013
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.12
Top10Des4na4onsofChina’sFDI(USDmillion),2009-13
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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
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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
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.2
InboundandOutboundForeignDirectInvestmentinChina,2003-2015(USDbillion)
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Diagramsource:AliciaGarcia-Herreroet.al.,Chinaoutboundforeigndirectinvestment:Howmuchgoeswherea<erround-trippingandoffshoring,BBVAWorkingPaper,June2015.
ChinaasaNetCreditortotheWorld
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SlowTransi;onAwayfromSOEs
Source:ChinaBusinessInsight,TUSAID,February2013,p.4
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.17
RisingImportanceofPrivateEnterprisesinChina’sFDI
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Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015
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Source:LihuanZhou,“China’sOverseasInvestments,Explainedin10Graphics,WorldResourcesIns;tute,January28,2015
STOCKOfFDI:ResultofFDIflowsover4me
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Source:ChinaBusinessInsight,TUSAID,February2013,p.917-01-12 17
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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?
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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??
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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
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17-01-12 29Source:Accenture,GrowthJourneys:HelpingAsianCompaniesRealizetheValueofTheirInterna;onalExpansionStrategies,2013,p.14
ExternalChallengesFacedbyAsianCountriesinInterna4onalExpansion
KeyconcernsforChinaFDIOverseas
regulatory,businessandculturalenvironments
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TrendtowardDiversifica4on
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.6
FromEnergytoDiversifica4on
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.14
TrendtowardDiversifica4on:TheCaseofChina’sFDIintheUS
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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
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.10
China’sForeignM&ADeals:EnergyandMining
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.19
NumberofChineseM&AinEuropebySectorin2014(2013)
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.7
China’sForeignM&ADeals:Technologies,Media&Telecommunica4ons
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.11
China’sForeignM&ADeals:RealEstate,HospitalityandConstruc4on
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.7
China’sOverseasM&ADeals:AgricultureandFood
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Diagramsource:EY,Ridingthesilkroad:Chinaseesoutboundinvestmentboom,March2015,p.5
OneBeltOneRoad:InvestmentOpportuni4es