China to pour trillions into Belt and Road projects
China’s well-funded Belt and Road Initiative has rolled out with thousands of Chinese enterprises going all out in the vast, new market created by participating countries and beyond. The vast overseas market will become a giant pool of capital, with trillions of dollars of overseas investment and financing in the coming years, experts projected.
Chinese investments overseas have been growing at a double-digit rate over the past 10 years. By 2016, some 30,000 Chinese companies have marched overseas, with a total investment of $1.2 trillion, including outward foreign direct investment at $183.2 billion. In five years, that figure is expected to rise to $750 billion, revealed Zhou Xiaofei, a director at National Development and Reform Commission (NDRC).
Zhou made the remarks at the ‘Chinese Firms Going Abroad 50 Forum,’ organized by the Counselors’ Office of the State Council. The forum was contracted to the Center for China and Globalization (CCG).
Zhou also pointed out that private companies make up some 60 percent of the Chinese companies in the foreign market, though many are inexperienced newcomers compared to their overseas counterparts.
‘The NDRC has streamlined the application process to facilitate Chinese companies’ overseas investment. Most investments only require a record on file, with no lengthy verification procedure,’ Zhou said. ‘The NDRC will continue to encourage Chinese companies to go overseas and negotiate and cooperate with participating countries along the B&R to bring down the cost of cooperation. Efforts will also be made to improve overseas security and to lower operational risks.’
Source: The Central People’s Government of the People’s Republic of China