Beijing, September 18

China’s outbound direct investment (ODI) is expected to surpass $1 trillion for the first time in 2015, as slowing economic growth and rising internationalisation of Chinese business see more local companies investing overseas.

Total direct investment offshore increased to just under $883 billion in 2014, Zhang Xiangchen, Deputy China International Trade Representative at the Ministry of Commerce (Mofcom), said on Thursday.

The commerce ministry on Wednesday reported that non-financial outbound direct investment rose 18.2 per cent to 473.4 billion yuan, or $77 billion, for the first eight months of the year.

Mofcom on Thursday also revised up its 2014 offshore non-financial direct investment tally to $107.2 billion from the $102.9 billion reported previously, taking total outward investment for the year to $123.12 billion.

“Our outbound investment has maintained a double-digit growth rate, and this trend will be sustained in future,” Zhang told a media briefing.

China’s slowing economy and market volatility is driving domestic firms to acquire foreign brands and technology, as well as diversifying, said Thilo Hanemann, research director at Rhodium Group in New York.

The Beijing government has rolled out policies to support the global efforts of Chinese companies, offering financial incentives and removing administrative controls on offshore deals.

Chinese firms have already announced or completed 390 deals worth $77 billion in the year to September 16.