Overseas investment helps world economy
According to several speakers at the First China Overseas Investment Fair on November 4, 2009, China’s tremendous overseas investment helps the global economy, especially the economies of developing countries to recover from the world’s financial crisis.
Chinese officials pressed for foreign countries to create a convenient and fair environment to make it easier for Chinese investors to continue to invest.
Comparing with the traditional big spenders, including the United States and European countries, who slowed their outbound investment, investment from China in overseas markets has increasing remarkably recently.
Zhang Xiaoqiang, vice-director of the National Development and Reform Commission, said despite the world’s financial crisis, China was still raising its overseas efforts. Many of China’s companies were active investors.
China’s overseas direct investment rose 190 percent in the third quarter during the same period last year. According to the statistics from the Ministry of Commerce, the investment reached to $32.87 billion for the first nine months.
Zhang added that growth has been a blessing for many countries recently.
Jon Huntsman, the US ambassador to China had the same opinion. He said that China’s investment was significant in improving and stimulating the world economy.
The US has benefited from the investments of other nations, Huntsman added. Throughout the 2003-to-2008 period, countries invested over $325 billion in some 4,300 projects in the US.
China was one of the nations whose investment in the US is fastest-growing, said Huntsman, with an annual growth rate in investment amount of 30% in 2004-2008 periods.
Taffere Tesfachew, chief of the Office of the Secretary-General under the United Nations Conference on Trade and Development (UNCTAD) said that China is one of the leading nations in stimulating the revival of developing economies by way of investment.
The figures from UNCTAD shows that in the year 2008, investment flowing out of the US declined by 18 percent to $312 billion, meanwhile flowing from EU nations fall by 30 percent to $837 billion. However, emerging economies, especially China, increased overseas investment, Tesfachew said.
He also said that nations and regional areas would benefit a lot from it, Africa and Asia in particular.
Some small islands in Caribbean like Grenada have great sunshine to grow plants and many other advantageous sectors to tap, F. Marcelle Gairy, Grenada’s ambassador to China, said. China has good technology to achieve their dreams.
She added it was win-win investment.
Mifzal Ahmed, advisor on investments for the Maldives’ Ministry of Economic Development, said China’s technology was cheaper, innovative and very practical.
Although the UNCTAD predicts that the investment outflows from Asia will slow down its speed this year, the organization still believes this region will still excel the rest of the world.
Tesfachew said outflows from China and India were the most prominent.
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