Chinese outbound projects plunge, investors pull back from US
- US think tank warns continued ‘financial strain’ may put the brakes on Beijing’s global trade and infrastructure programme
- Value of overseas investment and construction dropped to US$179.1 billion last year, down from US$279.8 billion in 2017
China’s outbound investment and construction plunged last year as the world’s second largest economy loses steam, and continued “financial strain” could put the brakes on its global trade and infrastructure plan, a US think tank warns.
Last year, the value of China’s overseas investment and construction projects dropped to US$179.1 billion – down from US$279.8 billion in 2017 and US$270.9 billion in 2016.
That’s according to the China Global Investment Tracker, which collects public data for the Washington-based American Enterprise Institute.
Chinese investors continued to pull back from the United States – investment there fell to US$10.6 billion last year, a 60 per cent drop from the US$24.9 billion in 2017. Chinese investment in America peaked in 2016 at US$54.1 billion, according to the report.
Germany, meanwhile, was the top destination for Chinese investment after carmaker Geely Group bought a US$9 billion stake in Daimler in February.
It comes as Beijing and Washington are locked in an intensifying rivalry on fronts ranging from trade and technology to security, and as China seeks to tighten control of its capital outflows.
Washington has accused Beijing of using its global infrastructure and investment strategy, the “Belt and Road Initiative”, to expand its geopolitical influence, an allegation China has repeatedly denied.