China’s Foreign Investment Focus Shifts to Manufacturing

Caixin

The manufacturing sector and information technology are replacing natural resources as favorite overseas investment targets for Chinese state-owned and private companies, according to a new report.

But this new investment focus, which reflects an economic transition that’s moving China toward more high-tech services and manufacturing, may slow in the future amid domestic regulatory restrictions and global uncertainties.

Most overseas manufacturing investment involves lending money to and buying stakes in foreign companies, according to the report co-authored by the Chinese Academy of Social Sciences (CASS) and China Bond Rating Co. Ltd. In many lands, Chinese companies have formed joint ventures with local manufacturers to produce goods as diverse as shoes to cars.

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