China’s total offshore investment on track to exceed US$1 trillion by end of 2015

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

Total direct investment offshore rose to just under US$883 billion in 2014, Zhang Xiangchen, the Ministry of Commerce’s deputy China international trade representative, said on Thursday.

The ministry reported on Wednesday that non-financial ODI rose 18.2 per cent to 473.4 billion yuan (US$77 billion) for the first eight months of the year.

On Thursday it also revised up its 2014 offshore non-financial direct investment tally to US$107.2 billion from the US$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 was driving domestic firms to acquire foreign brands and technology, as well as diversifying, said , research director at the US analysts, Rhodium Group.

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