China’s outbound direct investment (ODI) exceeded inbound foreign direct investment (FDI) for the first time in 2015. According to a joint government statement, total ODI flow in 2015 increased 18 percent to USD 145.7 billion, compared to a total of USD 135.6 billion in FDI.
This marked China’s 13th consecutive year of outbound investment growth, and saw it emerge as a net exporter of capital. China surpassed Japan to become the country with the second largest ODI flow in 2015.
Going forward, we expect continued strong growth in ODI, with the private sector taking a leading role. The financial sector should also see increased ODI to diversify investment portfolios and support Chinese companies ‘going out’.