China's Outbound Investment Hits Record High in 2024, Green Projects Surge
China's outbound direct investment (ODI) and overseas contracted projects reached new milestones in 2024, reflecting a strategic pivot toward sustainable growth and global economic integration. According to data from the Ministry of Commerce (MOFCOM), non-financial ODI increased by 10.5% year-on-year to $143.85 billion, while newly signed overseas contracts reached a record $267.3 billion, up 1.1%from 2023.
Green Infrastructure Gains Momentum
Green infrastructure played a prominent role, with new contracts for energy-efficient, environmental protection, and clean energy projects surging by 12.7%, totaling $49.26 billion. Analysts highlight this growth as indicative of China's increasing commitment to sustainable development, particularly in the Belt and Road Initiative (BRI) partner countries.
Investment in BRI countries amounted to $33.69 billion, a 5.4% increase compared to the previous year, underscoring China's deepening engagement with developing economies. A white paper issued by China's State Council Information Office in August 2024 emphasized the impact of these efforts, noting collaborations with over 100 countries on clean energy projects designed to provide affordable and reliable power solutions.
Regional Trends: ASEAN on the Rise
China's investment in ASEAN countries demonstrated robust growth, rising 12.6% year-on-year. Singapore, Indonesia, and Thailand were among the key beneficiaries, aligning with broader trends of regional supply chain integration and “nearshoring” strategies.
By contrast, investment in traditional hubs like Europe showed resilience but lacked the same upward momentum, with flows to the European Union declining even as investment in the UK increased. Meanwhile, investment in the U.S. exhibited modest recovery, with a notable rise in flows to Mexico, reflecting Chinese enterprises' strategic adjustments amid U.S.-China trade uncertainties.
Sectoral Insights
Leasing and business services, manufacturing, and wholesale and retail trade were the top sectors for outbound investments in 2024. The manufacturing sector, in particular, saw its share of ODI rise significantly, aligning with the global demand for advanced manufacturing and technology.
This shift highlights China's evolving role from a manufacturing hub to a global investor, especially in high-tech industries such as telecommunications, advanced manufacturing, and healthcare. At the same time, resource-driven sectors like mining, oil, and gas continued to attract significant Chinese capital.
Overseas Labor Services Recover
China's overseas labor services rebounded strongly, with 409,000 workers dispatched abroad in 2024, a 17.9% increase from the previous year. These workers primarily contributed to construction, transportation, and logistics, supporting infrastructure development and promoting rural revitalization through employment opportunities.
Strategic Implications for Global Stakeholders
For foreign professionals and investors, these trends highlight China's growing influence in shaping global investment patterns. The surge in green infrastructure projects opens opportunities for international partnerships in clean energy and environmental protection technologies.
Similarly, China's expanding investment footprint in ASEAN and beyond offers potential collaboration in supply chain optimization, advanced manufacturing, and resource development.
As China transitions from a "capital importer" to a "capital exporter," understanding these shifts will be essential for global stakeholders seeking to align with China's evolving investment priorities and leverage the opportunities they present.
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