Jan-May ODI higher on BRI support

China's total nonfinancial outbound direct investment rose 2.3 percent year-on-year to $61.6 billion in the first five months, underscoring the nation's sustained efforts to deepen international cooperation, said the Ministry of Commerce on Thursday.

In the meantime, the country's nonfinancial ODI in countries and regions involved in the Belt and Road Initiative reached $15.52 billion, surging 20.8 percent on a yearly basis, said He Yadong, a ministry spokesman.

Market watchers said that Chinese companies have already accelerated efforts to expand their presence in sectors such as manufacturing, transportation infrastructure and services across economies participating in the BRI, as well as in emerging markets in Southeast Asia, the Middle East and Africa.

Despite global geopolitical uncertainties and growing protectionist sentiment, China's ODI growth reflects the strong competitiveness and adaptability of its companies, especially in high-end manufacturing sectors in global markets, said Wang Zhimin, a researcher at the Academy of China Open Economy Studies, which is part of the University of International Business and Economics in Beijing.

Wang said that Chinese firms are not only investing in traditional industries, but are also increasing their footprint in fields such as electric vehicles, renewable energy and smart logistics, supporting host countries' industrial upgrading and sustainable development.

Chinese companies recorded $61.94 billion in turnover from overseas contracted projects between January and May, up 5.4 percent year-on-year. During the same period, the value of their newly signed contracts rose 13 percent to $98.68 billion, said the Ministry of Commerce.

Noting that Chinese investment today is far more diversified than in the past, Zhou Lisha, a researcher at the Institute for State-owned Enterprises — which is part of Tsinghua University in Beijing — said many firms have been keen to establish research and development centers, regional headquarters and localized production bases abroad.

Saneheld (Fuqing) Food Co Ltd, a Fuzhou, Fujian province-based quick-frozen foods manufacturer, serves as a compelling example of this mutually beneficial outcome. By partnering with Indonesian conglomerate Salim Group, the Chinese company began building a surimi and seafood processing plant in Indonesia in 2023 and the facility will be operational next year.

It will primarily produce frozen surimi and seafood products for export to China as raw materials, with an expected annual output of 80,000 metric tons, said Fuzhou Customs.

The project aims to leverage the complementary strengths of China and Indonesia's marine sectors, fostering deeper integration while advancing the upgrade of Indonesia's marine industry and bringing its high-quality fishery resources to the Chinese market, said Shi Jie, the company's vice-chairman.