中文
Home Guide Information Case Study Regulations Organizations Our Center Our Services Contact Us
 
Our Services
Survey on legal environments of investment destination
Survey on project due diligence (Mergers)
Assess legal risks of foreign investments
The structural design of investment programs
Drafting legal documents in Chinese and foreign language
Full participation in business negotiations
Provide legal advice on specific issues
Assist investors to handle domestic administrative procedures
Cooperate with foreign law firms
Provide special training on laws of investment destination
Provide solutions to legal conflicts in different jurisdictions
Settlement on foreign investment disputes
Contact us

Cui Haiyan(Kathy) Senior Partner Attorney
Tel:0086-571-87007129
Mobile:0086-13605816499
E-mail:chy@zjblf.com

Shen Zhushi(Robin) Senior Partner Attorney
Tel:0086-571-87007198
Mobile:0086-13588212432
E-mail:Lawyer_szs@hotmail.com

Fax:0086-571-87006661

 

  Your Location:Home>>The Status of Overseas Investment in China
 
The Status of Overseas Investment in China
 


 

 First, on September 8, the Ministry of Commerce, National Bureau of Statistics, the State Administration of Foreign Exchange jointly issued, " Statistical Bulletin of China's foreign direct investment in 2008", releases industry-wide foreign direct investment statistics. The Bulletin includes 6 parts as follow: 1.overview of China's foreign direct investment; 2. the characteristics of China's foreign direct investment; 3. China's direct investment in the major economies; 4.the composition of domestic investors in china; 5. the distribution of foreign direct investment enterprises; 6. comprehensive statistical data.

Part I: Overview which reflects china's foreign direct investment status and position in the global foreign direct investment. 

- 2008, china's foreign direct investment is 55.91 billion U.S. dollars, increased 111% over the previous year. Of which non-financial investment is 41.86 billion U.S. dollars which accounts for 74.9%, an increase of 68.5, financial investment is 14.05 billion U.S. dollars, up 741 percent, accounting for 25.1%.

- By the end of 2008, more than 8,500 domestic Chinese investors in 174 countries /regions  establish 12,000,foreign direct investment enterprises,  the net cumulative foreign direct investment is 183.97 billion U.S. dollars , the total assets of foreign companies accounts for more than one thousand billion U.S. dollars.

- In 2008, financial overseas direct investment is 36.69 billion U.S. dollars, among which 26.79 billion U.S. dollars are to the banking sector, accounting for 73% of total investment; 510 million U.S. dollars are to the insurance industry, accounting for 1.4%; 5.3 billion U.S. dollars are to securities industry, accounting for 1.4%, and the remaining 8.86 billion U.S. dollars are to other financial activities which accounts for 24.2%. By the end of 2008, a total of Chinese state-owned commercial banks had set up 43 branches, 20 subsidiary organizations in the United States, Japan, Britain and other 28 countries and region, those banks employed 81 thousand employees overseas among which 79 thousand are foreigners; By the end of 2008, china set up 12 overseas insurance companies and financial institutions.


- In 2008, Chinese non-financial overseas direct investment is 41.86 billion U.S. dollars, increased by 68.5%; foreign enterprises gain sales income of 534.3 billion U.S. dollars, increased by 58.3%. Investors gain total volume of exports and imports of 179.2 billion U.S. dollars through overseas enterprises, among which the volume of exports is 2.1 billion U.S. dollars, up 29.4% over the previous year.

- By the end of 2008, there are more than 1 million employees of which 45.5 million are employed foreign workers.


Part II: Analysis of china's foreign direct investment flows and the characteristics of the stock
- It’s the first time china's foreign direct investment flows exceeded 50 billion U.S. dollars, doubled over the previous year; acquisition and merger accounting for half of the flows; Financial sector foreign direct investment is active, 7.4 times higher than the previous year; Reinvestment of current profits decreases by 19.2%; The investment to business services, finance, wholesale and retail trade, mining and transportation account for the 90%; Asia is the most concentrated areas of current flow while Africa is the areas with largest growth. Investment from different provinces grows steadily, and Guangdong, Jiangsu, Shandong provinces are the in the top of non-financial overseas direct investment; central enterprises accounted for 85.4% of the flow while the private sector accounted for only 0.3% of flow.

- The stock of the investment scale expanded steadily, covering more countries/regions; Industry distribution is more divers, with business services, financial services, wholesale and retail trade, mining, transportation / warehousing and postal industries,  and manufacturing industry totally amounts 90% of the stock of investment. state-owned enterprises and limited liability companies are the major force in foreign direct investment; in non-financial overseas direct investment stock, the central enterprises and units accounted for 81.3%, and local enterprises accounting for 18.7%.

Part III: analysis of direct investment in six main countries/regions of European Union, the United States, Australia, the Russian Federation, the Association of Southeast Asian Nations and Hong Kong from the angle of the structure of trades.


Part IV:  Analysis on the composition of domestic investors mainly from the ownership, industry
- china's foreign direct investors remain diversified. State-owned enterprises decline in the proportion of domestic investors while limited liability companies increased to 50.2% of domestic investors, taking the first place. The numbers of domestic investors of state-owned enterprises accounted for 16.1%, decreased by 3.6 percentage, taking the second place. the private sector accounted for 9.4%, the third in the number of investors.

- In non-financial overseas direct investors, the central enterprises and units accounted for only 5.6%, and provinces and autonomous regions accounted for 94.4% of investors.

- From the view of domestic investors in the industry distribution, the total number of manufacturing investors accounted for 42.7%, followed by wholesale and retail trade, and then are the  business services, agriculture / forestry, animal husbandry / fisheries.


Part V: discuss on the allocation, sector allocation of china's foreign direct investment enterprises

- By the end of 2008, china's 12,000 foreign direct investment enterprises were distributed in 174 countries and regions worldwide, the investment coverage is 71.9%.
- Asia, Africa investment coverage are the highest, ,90% and 81.4% respectively.
- with respect of area allocation, Asia and Europe had 71% of the total foreign enterprises.
- with respect of methods enterprises establishment, subsidiaries and affiliates accounted for 96% of the foreign companies, associated companies accounted for only 4%.
- he enterprise from Zhejiang, Guangdong, Jiangsu, Shandong, Beijing, Fujian, Shanghai, Henan and Heilongjiang provinces/cities accounted for 70% of the total number of foreign companies. Zhejiang Province had the largest number of foreign enterprises provinces.

Part VI: lists of comprehensive statistical data of Foreign direct investment.(Omitted )

                                                                        
Second, foreign investment in Zhejiang Province in 2009
 "Zhejiang Province, although the scale of overseas investment is not huge, but a high success rate reflects the characteristics of sound operation of Zhejiang enterprises. “
Zhejiang enterprises overseas investment have their clear characteristics: First, foreign investment are mostly have their advantages; second, investment projects often have a good market base; Third, foreign investment is focused localization of management, particularly with the acquisitions, often run by local people mainly.

Through overseas investment, Zhejiang enterprises effectively control the sales channel, obtain advanced technology, advertise or acquire the brand. Moreover, through overseas investment, Zhejiang enterprises not only promote to adjust the business development method, upgrade the competitiveness, but also gain experiences of multinational management which lays a sound foundation to nurture multinational enterprises of Zhejiang province.

 

 



 
 
Copyright(C)2010,Zhejiang Overseas Investment Legal Center