Despite an equity rout that left its market a little prickly to outside investors, China and Chinese companies themselves has continued to flex their muscles overseas.
In fact, they’re not just flexing their muscles, their downright shaking things up. Chinese companies have been snapping up so much business overseas that China is pretty much set to become a net provider of overseas funds worldwide.
According to Bloomberg, the nation’s outbound investments have jumped nearly 30% in the first half of the year compared to 2014, absolutely dwarfing the 8.3% gains the nation scored in foreign direct investment inflows. For the same time period, China’s outward investments totaled a staggering $55 billion – just $12 billion shy of the region’s total foreign direct investments.
As for its implications, here’s what Chen Bingcai, a researcher at the Chinese Academy of Governance told Bloomberg:
“The turning point will take place within this year — China will be a net provider of investment funds to the world… …(w)ith institutions like the Asian Infrastructure Investment Bank and Silk Road Fund, China’s overseas investment will only accelerate, and this trend will reshape the global economic landscape.”
With all the takeovers they’ve been pulling off recently, I won’t be surprised if that’ll be the case.
Photo credit: Jundy Tiu via Flickr