Feb 22, 2019 07:47 PM

Chart of the Day: Nonfinancial Outbound Direct Investment Continues to Wither

ODI fell 14.9% year-on-year to $9.19 billion in January, data from China’s Ministry of Commerce (MOFCOM) showed on Thursday (link in Chinese).

In the same month in 2018 it was up 39.7% year-on-year.


MOFCOM spokesperson Gao Feng attributed the decline to slowing global economic growth, stricter security reviews of Chinese foreign investment, and other factors.

In January 2018, ODI in the mining industry hit $3.75 billion, he said, but plunged to $550 million this year, which had a significant impact on the overall rate.

ODI shrunk for six consecutive months from June through November last year. It expanded in December with year-on-year growth of 27%, but continued to contract in the first month of 2019.

ODI will continue to shrink and China’s “Go Global Strategy” — which encourages domestic companies to engage in investment abroad — will face restrictions due to emerging trade protectionism, China Center for International Economic Exchanges chair Zhang Yansheng predicts (link in Chinese).

MOFCOM claimed that the quality and efficiency of ODI are improving and that “irrational” outbound investment has been curbed. Investment has mainly flowed to the leasing and business services industry (26.6%), the manufacturing industry (21%), the wholesale and retail trade (11.2%) and the construction industry (10.3%)

Contact reporter Gao Baiyu (

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