China banks on Outbound Direct Investment to spur growth

China is banking on its Outbound Direct Investment, which crossed USD 100 billion for the first time last year, to generate growth for its sagging economy, as it looks to become a net exporter capital to India and other countries.
The world's second-largest economy witnessed its Foreign Direct Investment (FDI) rising at its slowest pace, 1.7 per cent, in two years in 2014, which had crossed over 120 billion in 2010.
China's non-financial ODI reached USD 102.9 billion last year, exceeding USD 100 billion for the first time, a 14.1 per cent year-on-year rise, Vice Minister of Commerce Zhong Shan, said today, adding the country remains world's third-largest outbound investor.

"The outward investment will continue to grow faster than utilisation of foreign investment which will make China a net investor, thus marking a historic turning point," Zhong said.
"ODI registered 14.1 percent rise from the previous year and much better than the 1.7 percent gain recorded in FDI of USD 119.6 billion," sate-run Xinhua quoted Zhong as saying.
China's Outward investment in the services sector grew by 27.1 per cent, accounting for 64.6 per cent of the total, while investment in mining dropped by 4.1 per cent, representing a declined share of 18.8 per cent, state-run China Daily reported today.

Plush with about USD 4 trillion foreign exchange reserves, the communist giant is stepping up its investments abroad.

China is committed to invest USD 20 billion in India this year specially in the two Chinese industrial parks coming up in Indian states Gujarat and Maharashtra. This will increase the Chinese investments in India for the first time for about USD 500 million.
China is also looking to step up its investments in the Silk Road and Maritime Silk Road belts launched by President Xi Jinping last year.
Xi has announced USD 40 billion fund in addition to the USD 50 billion for the China promoted Asian Infrastructure Investment Bank, (AIIB) for which India and 25 other countries have signed up.