China’s FDI on the Go.docVIP

China’s FDI on the Go 　　CHINA has been a recipient of foreign direct investment （FDI） for some time， starting when the country embarked on reforms and opened-up in the late 1970s. Inflows of FDI were US $1.956 billion in 1985 and by last year had risen to a staggering US $111.716 billion， with an annual increase of 15.54 percent. During that time the number of projects receiving foreign investment increased from 3，073 to 27，712. The inbound investments have been mainly from free ports， such as Hong Kong， and countries and regions including Japan， South Korea， the U.S.， and the European Union. China is a relative newcomer to FDI， having participated for just a decade， but has done so with much speed. Its non-financial FDI surged from US $2.9 billion in 2003 to US $77.22 billion in 2012， with an annual increase of 38.85 percent. There were 34，000 Chinese companies making investments abroad in 2003， and the figure rose to 44，000 in 2012， covering more than 140 countries and regions. FDI outflows have gone mainly to Singapore， Australia， the U.S. and free ports， such as Hong Kong. Chinas outbound FDI is growing faster than the world’s average and that of some developed economies， including the U.S.， Japan and the U.K. According to statistics from the United Nations Conference on Trade and Development （UNCTAD）， the worlds FDI volume climbed from US $570.7 billion in 2003 to US $1.7 trillion in 2011， with an annual increase of almost 12.85 percent. The U.S.s annual growth during that period was marginally faster at 13.26 percent， while Japans grew at 16.56 percent and the U.K.’s 6.22 percent. China’s non-financial cross-border direct investments in 2012 exceeded its FDI inflows in 2007 before the world economic crisis hit， occupying three percent of the worlds total and putting it among the top 10 investors in the world. Over several decades of reform and openingup， Chinas economic strength has improved significantly and its companies have grown