World Factory to World Investor.docVIP

World Factory to World InvestorDubbed “the world factory，” China has a long history of being a paradise for global investors， with an abundant and cheap labor force， vast land and a wide range of preferential policies. However， that tradition changed dramatically in recent years， as the capital inflow to the country substantially slowed and capital outflow grew rapidly. The country ascended to join the world’s net capital exporters for the first time， with capital output outnumbering capital inflows last year.Chinese investors channeled capital into 6，128 overseas firms in 156 countries in 2014， with outbound direct investment （ODI） in nonfinancial sectors reaching $102.89 billion， up 14.1 percent from a year earlier， according to the Ministry of Commerce （MOFCOM）.In sharp contrast， foreign direct investment to China grew much slower at 1.7 percent， totaling $119.56 billion in 2014. It was the first time two-way nominal capital flows have been near a balance， according to the MOFCOM.“If Chinese firms’ investment through thirdparty financing is included， the total ODI volume would equal about $140 billion， which means China is already a net outbound investor，” said Shen Danyang， spokesman of the MOFCOM.According to the MOFCOM， mergers and acquisitions were more diversified in investment projects and fields in 2014. Popular sectors， like the energy and mining sectors， continued to earn more investment， while active acquisitions pushed forward in the manufacturing sector and the agricultural sector.Meanwhile， a better industrial investment structure is taking shape， with leasing and commercial service， mining and retail， and wholesale business as the top three key overseas investment sectors， said Shen.Xing Houyuan， Vice President of the Chinese Academy of International Trade and Economic Cooperation （CAITEC）， told Beijing Review that a surging ODI from China is a result of foreign countries’ thirst for investment and Chinese companies’ growing ambition for more develo