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  • China outbound Investment

    1. 1. China Outbound Investment Why Chinese companies are coming out, and at what scale are they doing so. How does it affect your brand/company? Ricardo Ferrer Asian Horizon Ltd. Shanghai, 2013
    2. 2. Looking back: the China Outbound landscape changedChina’s vision for its companies to become global players was spelled out in 1999 with the“Go Global” policy - the State Council issued a new regulation which granted export taxrebates, foreign exchange management assistance and financial support to overseasChinese enterprises that used raw materials, components and parts, and machineryequipment made in China.Chinese companies have been investing outside of China through greenfield projects andthrough M&A. Chinese ODI Flows (1982-2011) Chinese ODI Flows (2005-2011) 80000 80000 70000 70000 60000 60000 50000 50000 40000 40000 US$ million US$ million 30000 30000 20000 20000 10000 10000 0 0 05 06 07 08 09 10 11 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 20 20 20 20 20 20 20 19 19 19 19 19 19 19 19 20 20 20 20 20 19 19 20 Source: United Nations Conference on Trade and Development (UNCTAD), “Inward and Outward Foreign Direct Investment Flows, Source: A Capital Dragon Index Annual,” UNCTADStat Database. 9 Units in US$m at current prices and current exchange rates
    3. 3. China’s war chest has been steadily increasing Chinas foreign reserves (1990-2011) 40000 30000 20000 100mUS$ 10000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: PRC State Administration of Foreign Exchange (SAFE)As of the end of March 2012, China had US$3,305bn in foreign exchange reserves10.China has had large foreign reserves from historical trade surpluses, high net foreigndirect investments (“FDI”) inflows and speculative capital inflows.Chinese officials realised that parking the bulk of their foreign reserves in the bonds ofover-indebted Western governments would not generate the highest returns (at the endof June 2012, over 35% of the reserves were stored in low-yield US governmentbonds8).
    4. 4. Historical Outbound M&A ActivityOutbound M&A was insignificant until 2005 when it passed US$10bn after which thepace picked up with a total of 207 announced deals in 2011 worth US$42.9bn¹.According to PwC’s analysis which includes announced deals (not necessarily closed),Chinese outbound M&A in 2011 represented an increase of 10% by deal number and12% in deal value year-on-year¹.However, according to A Capital Dragon Index which tracks Chinese outboundinvestments globally, the index dropped slightly in 2011 (from US$68.81bn to US$68bn invalue) due to over-performing Chinese growth and possibly a sign of caution of Chineseinvestors towards volatile markets and increased discernment regarding investmentopportunities. But Chinese outbound investment reached US$21.4bn in the firstthree months of 2012 which represents an increase of 118% in value compared to1Q2011 (the A Capital Dragon Index does not include deals that have not closed). Source: MergerMarket
    5. 5. Why Chinese companies are going out“Go global” is a natural extension of the development path of Chinese companies. They arelooking to:• secure supply of mining and natural resource assets• develop new markets outside China and intensify international presence• acquire technologies and brands as many Chinese buyers seek to improve their competitive position in China• make minority interest investments with a strategic partner to consolidate partnership and future cooperation opportunity• gain access to learning international management skills and expertiseAs part of China’s 12th Five-Year plan, China will spend US$1.7tln over the next five yearsdeveloping seven “strategic sectors” - confirmed by Chinese officials at the U.S.-China JointCommission on Commerce and Trade meeting in Chengdu in 21 Nov 2011. See AppendixIV and V for details on China’s US$1.7tln spending target over the next five years.State-owned enterprises (SOEs) have dominated outbound investments in the past, butprivately owned enterprises (POEs) are participating more and more in outbound M&Aactivities (Geely/Volvo, Tencent/Digital Sky, Level Up, Huawei/CIP). 5
    6. 6. The government watches outbound deals closely and isquick to change policy directionsChina got burned by the loss of money in its first major investments in financial firms in 2008.China Investment Corporation (CIC) faced harsh criticism from the Chinese public andgovernment and reassessed its investment strategy.Other failed deals such as Chinalco’s attempt to double its stake in Rio Tinto drewembarrassment abroad and criticism at home. See map in Appendix I showing some failedChinese investments.Through the complex onshore approval regime, the government ensures companies haveproperly planned and prepared their outbound investments.We are seeing more minority deals combining western resources and technology withChinese financing capabilities together with cooperation arrangements to form long termstrategic relationships. Going for a minority stake is increasingly recognized as a way to tapinto high quality assets that would otherwise not be for sale or out of reach for Chineseinvestors: Zoomlion/Electromech, CIC/GDF Suez, Weichai Group/KION Group.Following the European debt crisis, instead of buying government bonds, Chinese funds arelooking to invest in European infrastructure and technology companies. 6
    7. 7. Sources of China Outbound investmentSOEs… POEs……traditionally dominated outward investment …present a huge potential. Privatebecause they are the biggest and most enterprises accounted for US$1.269bnadvanced companies with easy access to (1.7%) of total non-financial ODI flows up tocheap financing from state-owned banks and 201116. POEs, which have been growing inhave market presence. They are the largest terms of number and size, are playing anChinese companies in the natural resource increasingly important role in China’ssector. economy5, and are particularly active in outbound M&A in the industrial andThe four largest outbound investors— consumer related sectors.CNOOC, Sinopec, China Investment Corp.(CIC), and China Aluminum—alone The complicated approval regime at homeaccounted for half of Chinese investment and foreign exchange restrictions have keptthrough the end of 2010. All are centrally the number of outbound deals by POEscontrolled, with CIC one of the two sovereign down.funds6. Private firms are increasingly active, withSOEs represented 98% of all deal value in 28% of total investment amount (up from1Q2012 (as against 53% in Q1 of 2011), a 17%) and 61% in terms of number of dealsrecord high, due to their focus on (up from 44%) in 201111.resources12.See Appendix II for SOEs in Fortune 500.
    8. 8. Chinese outbound private equityThe private equity industry is fast emerging as a key provider of growth capital to Chinasprivately owned SMEs. With some degree of fiscal tightening in China and volatility in equitymarkets, the role of PE and venture capital funds in this sector of the economy is set togrow.Chinese funds are investing minority stakes alongside Chinese companies in midsizedEuropean companies with strong potential in China, either because of their branding ortechnology or some other edge.There is a growing number of new Chinese funds that are keen to invest in debt riddencompanies in Europe and the US which have solid businesses.We are also seeing more leveraged buyouts and PIPES in offshore-listed PRC businesses -e.g. Focus Media by CEO Jason Jiang, The Carlyle Group, FountainVest Partners, CITICCapital Partners, CDH Investments and China Everbright; Alibaba’s share buy-back fromYahoo; Citic Capital’s move for telecoms billing firm AsiaInfo-Linkage.
    9. 9. China Outbound Drivers and Investment areas “When going out, the investment should carry benefits for the company and for China’s economy by either promoting Chinese exports, enhancing the firm’s technological capacity and R&D activities, or enabling it to create and establish an international brand.” MOFCOM
    10. 10. Drivers for PRC companies to “go out”Access to raw materials – oil, gas, mining:Need to secure access to overseas energy resources and raw materials to support China’s higheconomic growth rateBetween 2004 and 2006 oil and gas attracted the most Chinese interest, between 2007 and 2009 interestshifted to the metals and mining sectorsOil: China was the world’s second-largest consumer of oil behind the United States, and the second-largest net importer of oil as of 20094.Mining: aluminum, copper, nickel, iron ore, and other key commodity productsDeals in the resources and energy sectors continued to dominate in 2011, representing 42% of thenumber of outbound transactions on a combined basis compared to 44% in 2010. This sector alsoaccounted for 83% of deal values and 14 out of the 16 deals valued at over US$1bn¹.Acquisition of Technology, Brands, and Know-HowChinese companies are looking for advanced technology, manufacturing processes, and managerialknow-howCompanies are encouraged to enter joint ventures or to purchase foreign companies through which theycan absorb state-of-the-art technologies and thus “leapfrog” several stages of development and upgradesShougang (Capital) Iron and Steel/ Mesta Engineering and Design Inc (US); Lenovo/IBM and Medion AG;Tencent/Digital Sky Technologies; BAIC/SAAB, Sany/Putzmeister, Weichai/KIONThe global crisis allowed China to go bargain hunting for firms with good brand recognition but in direfinancial straits: Nanjing Automotive/MG Rover, Geely/ Ford Motors Volvo, Shandong Heavy/Ferretti.Haier/Sanyo white goods business, Sergio Tacchini, Fila, Kappa. 10
    11. 11. Drivers for PRC companies to “go out” cont.Competition in the Domestic Market:Chinese companies are facing intensifying levels of domestic and international competition. Saturated domestic markets orattempts to gain first-mover advantage in untapped markets overseas are drivers for them to go out.Chinese firms can no longer compete on low cost alone so they are going out to obtain better research, development, andbrand recognition. They want to have a competitive edge in the domestic market. Foreign companies control virtually all IPin China and account for 85% of Chinas technology exports.Overcoming Trade BarriersSome Chinese companies invest abroad in an attempt to avoid foreign quotas, tariffs, and other barriers to Chinese-madegoods.This was a more compelling motivation before China’s WTO accession, but some tariffs and quotas remain and Chinesefirms have continued to build factories in countries that have relatively unfettered access to the American and Europeanmarkets, e.g. TCL/Schneider deal was a way for Chinese television manufacturer TCL to avoid European quotas onChinese imports.Greenfield investments have also been made in order to take advantage of other country’s government subsidies, taxcredits/breaks and cheap land, eg. Suntech’s factory in Arizona qualified for federal and state tax breaks.Creating Global ChampionsA top priority for the Chinese government under its “going global” strategy is the creation of a number of “globalchampions”, large PRC firms with globally recognized brands able to compete in the international marketplace.All large investors, such as China Minmetals and Industrial and Commercial Bank of China, are centrally controlled. Almostall firms that might qualify as national champions are SOEs.These also include partially government-owned variations or ones with strong government ties, eg Haier (appliances),Lenovo (computers), Huawei (telecommunications). 11
    12. 12. The Outlook is bright Chinas ODI net flows in 2011 reached US$74.65bn, an increase of 8.5 % compared to the previous year. ODI grew an annual average of 45% between 2002 and 2011³. For the first half of 2012, there were 117 outbound transactions³. By the end of 2011, more than 13,500 PRC investing entities had established about 18,000 overseas enterprises in 178 different countries. In 2011 alone, China invested in 1,392 overseas projects in 132 countries³.
    13. 13. The Outlook is bright Although macro-economic indicators show that China’s economy continues to slow down in 1H 2012, its accumulated outbound direct investments into the non-financial sector totalled US$35.42 billion, indicating 48.2% growth year-on-year13. China’s outbound M&A will continue to grow with more diversified industry focus. As production of Chinese goods continues to move up the value chain and the country transitions to a consumer-led economy, buyers from China are keen to acquire more industrial know-how, technology and brands. China will soon become a net exporter of FDI. China’s Ministry of Commerce expects this crossover to occur around 2015, while the International Monetary Fund (IMF) thinks that it could happen as early as 20117. A Capital Dragon anticipates an additional US$800bn of Chinese ODI over the next five years.11 According to a SAFE official, the government is targeting a total of US$560bn in outbound foreign direct investment in the five years to 2015.
    14. 14. Geographical outlook Chinas outward FDI flows by region (US$ million, 2004-2011) 50000 45000 40000 Asia 35000 Africa 30000 Europe 25000 20000 Latin America 15000 North America 10000 Oceania 5000 0 2004 2005 2006 2007 2008 2009 2010 2011 Source: PRC Ministry of Commerce (MOFCOM), National Bureau of Statistics (NBS), and State Administration of Foreign Exchange (SAFE) According to a survey by the EIU² at the beginning of 2010, 42% of the respondents said they planned to look to Asia-Pacific for investment, while 39% planned to invest in North America and 24% in Western Europe. Among manufacturing companies, eight out of 23 said they will focus on North American markets; their aim is market expansion. Asia, in particular Hong Kong, is the primary destination of Chinese outbound investment. Singapore is becoming a popular platform for resources deals in the area. See Appendix III for a more detailed explanation.
    15. 15. 2010 Outbound Direct Investment Flow by RegionDistribution of Chinas ODI Flow by Global Region, 2011 (US$ million) 3320 3170 2480 Africa 11940 Asia Europe Latin America 8250 North America 45490 Oceana Source: MOFCOM, NBS, SAFEChina has also begun to cut deals with resources-rich African nations under which itwill fund the building of infrastructure in exchange for resources such as oil andcopper. China struck such type of deals in seven African countries, worth a total ofUS$14bn between 2004 and 2010².
    16. 16. 2010 Top 10 destinations for Chinese ODITop 10 destinations of Chinese ODI, 2011 (US$ million) 405.9 376.4 372.8 708.2 899.3 1060.3 Hong Kong 1104.1 British Virgin Islands 2169.2 Cayman Islands Australia 2926.1 Singapore United States Luxembourg South Africa Russia 26251.9 Canada Source: MOFCOM, NBS, SAFE
    17. 17. China’s outward foreign direct investment flows into EU Country 2005 2006 2007 2008 2009 2010 2011 There is a noticeable increase inAustria - 0.04 0.08 - - 0.46 20.22Belgium - 0.13 4.91 - 23.62 45.33 35.9 Europe as an investment target, withBulgaria 1.72 - 0 - -2.43 16.29 53.9 44 announced transactions in 2011,Cyprus - - 0.3 - - - 89,54 compared to 25 in 2010¹. The targetCzeck Rep - 9.1 4.97 12.79 15.6 2.11 8.84 sectors in Europe have beenDenmark 10.79 -58.91 0.27 1.33 2.64 1.61 5.89Estonia - - - - - - - industrials and consumer relatedFinland - - 0.01 2.66 1.11 18.04 1.56 sectors besides the always popularFrance 6.09 5.6 9.62 31.05 45.19 26.41 3482 resources sector.Germany 128.7 76.72 238.7 183.4 179.2 412.4 512.4Greece - - 0.03 0.12 - - 0.43Hungary 0.65 0.37 8.63 2.15 8.21 370.1 11.61 Europe is experiencing theIreland - 25.29 0.2 42.33 -0.95 32.88 16.93 start of a structural surge in ChineseItaly 7.46 7.63 8.1 5 46.05 13.27 224.8Latvia - - -1.74 - -0.03 - - ODI in advanced economies. The take-Lithuania - - - - - - - off was only recent: annual inflowsLuxembourg - - 4.19 42.13 2270 3207 1265 tripled from 2006 to 2009, and tripledMalta - 0.1 -0.1 0.47 0.22 -2.37 0.27 again by 2011 to $10bn for the year.Netherlands 3.84 5.31 106.8 91.97 101.5 64.53 167.9Poland 0.13 - 11.75 10.7 10.37 16.74 48.66 The number of deals with a value ofPortugal - - 0 - - - - more than $1m doubled from less thanRomania 2.87 9.63 6.8 11.98 5.29 10.84 0.3 50 to almost 100 in 2010 and 2011 15.Slovakia - - - - 0.26 0.46 5.94Slovenia - - - - - - - In 12012, Europe was the no.2Spain 1.47 7.3 6.09 1.16 59.86 29.26 139.7 destination behind South America andSweden 1 5.3 68.06 10.66 8.1 1367 49.01 no.1 for non-resources with US$1.7bnUnited Kingdom 24.78 35.12 566.5 16.71 192.2 330.3 1420Total 189.5 128.7 1044 466.6 2966 5963 7471 invested and 83% of non-resource(US$ million). Note: Data for 2005, 2006 include only non-financial outward FDI flows. total11. Source: MOFCOM, NBS, SAFE
    18. 18. Sectoral CompositionThe flow of investment in natural resource extraction accounted for nearly half of the total in2003, one third in 2004, and about 40% in 2006 but dropped to less than 16% in 2009. Thelargest investments in 1Q2012 were dominated by the traditional pattern of Chinese state-owned companies investing in energy and resources companies in places like SouthAmerica and Africa.However, Chinese ODI targets a wide variety of business areas, reflecting the diversifiednature of the country’s domestic industries and the Chinese government’s considerations.The consistently high percentage of investment flow in the service sector (30% in businessservices and 19% in finance in 2009) reflects the fact that ODI is largely used to serve andpromote the export of Chinese commodities.According to MOFCOM, the outflows of financial ODI reached US$6.1bn in 2011, amongwhich US$3.4bn was in the banking sector (56%). By the end of 2011, total Chinese financialinvestments overseas was split between banking (80.1%), insurance (1.7%), securities(5.2%) and other financial sectors (13%). Investments by financial institutions dropped29.7% to US$6.1bn in 2011, probably due to the continuing European debt crisis and avolatile global financial market. However investments by non-financial companies reachedUS$68.6bn in 2011, up 14% from the previous year³. 18
    19. 19. Outbound Direct Investment Flow by Sector, 2011Distribution of Chinas ODI Flow by Sector, 2011 (US$ million) Agriculture, forestry, husbandry, and fishery 776 1648 2564 Mining 1875 10324 Manufacturing Production and supply of electricity, gas and w ater 7041 117 Construction 6071 Transport, storage and post Information transmission, computer servises and softw are 1974 Wholesale and retail trade Lodging and catering services 14446 Banking Real Estate Leasing and business services 798 Scientific research, technical service and geologic prospecting 105 Water conservancy, environment and public facilities management 6 20 25597 Service to households and other services 329 Education 255 707 Health, social security and social w elfare Culture, sports and entertainment Source: MOFCOM, NBS, SAFE
    20. 20. A word of warningExtensive use of data has been taken from the 2010 and 2011 Statistical Bulletin of China’sOutward Foreign Direct Investment issued by MOFCOM, NBS and SAFE. Unfortunately,data most readily available from Chinese statistical sources generally have a reputation forinaccuracy and opacity.Also, different sources have different measurement methods. All values must, therefore, betaken with some reservations.By way of example, according to ThompsonReuters data, China outbound investment in2011 reached US$59bn. PwC which based its analysis on ThompsonReuters andChinaVentures data stated there were US$42.9bn with 207 deals in 2011, and according toA Capital which uses data sourced from Mergermarket, NBS, MOFCOM, UNCTAD andproprietary research, 2011 saw US$68bn worth of ODI flows from China. According toChina’s 2011 Statistical Bulletin of Chinas Outward Foreign Direct Investment, ODI flows for2011 were US$74.7bn.The 2009 Statistical Bulletin of China’s Outward Foreign Direct Investment, compiled byMOFCOM, does not provide ownership breakdown for companies responsible for the rest ofthe capital (about 30%). They may include state enterprises that are governed by local(provincial or municipal) governments, and companies partially owned or controlled by thestate, eg. Lenovo, TCL, and Beida Jade Bird (all listed companies) owned by the regionalgovernments of Beijing, Shanghai and Guangdong.
    21. 21. Appendices
    22. 22. Appendix I: Through consolidation and controls over new entrants,national champions have been built from large SOEs Fortune Company Industry Revenue Fortune Company Industry Revenu500 Rank (US$ 500 Rank e (US$ # billion) # billion) 5 Sinopec Group Petroleum Refining 273,422 297 China Metallurgical Group Equipment Manufacturer 32,076 6 China National Petroleum Petroleum Refining 240,192 311 Aviation Industry Gorp. of China Aerospace & Defense 31,006 7 State Grid Utilities 226,294 326 Shougang Group Metals 29,181 77 Industrial & Commercial Bank of China Bank 80,501 328 Ping An Insurance Insurance 28,927 87 China Mobile Communications Telecommunications 76,673 331 Aluminum Corp. of China Metals 28,871 95 China Railway Group Construction, Engineering 69,973 341 Wuhan Iron & Steel Metals 28,170 105 China Railway Construction Construction 67,414 343 China Post Group Utilities 28,094 108 China Construction Bank Bank 67,081 346 China Resources Resources 27,820 113 China Life Insurance Insurance 64,635 352 Huawei Technologies IT, communications 27,356 127 Agricultural Bank of China Bank 60,536 354 Sinosteel Metals 27,266 132 Bank of China Bank 59,212 366 COFCO Food, agribusiness 26,469 139 Noble Group Agricultural and energy products 56,696 367 Jiangsu Shagang Group Metals 26,388 145 Dongfeng Motor Automotive Motor Vehicles 55,748 147 China State Construction Construction, Engineering 54,721 371 China United Network Communications Utilities 26,025 Engineering 375 China Datang Power Generation 25,915 149 China Southern Power Grid Utilities 54,449 398 Bank of Communications Banking 24,264 151 Shanghai Automotive Motor Vehicles & Parts 54,257 162 China National Offshore Oil Mining, Crude Oil Production 52,408 399 China Ocean Shipping Shipping 24,250 168 Sinochem Group Energy, agriculture, chemicals, real 49,537 405 China Guodian Power 24,016 estate, finance 408 China Electronics IT 23,761 197 China FAW Group Automotive Vehicles 43,434 430 China Railway Materials Commercial Steel Trade & Railway Service 22,631 211 China Communications Construction Transportation infrastructure 40,414 Baosteel Group Metals 431 China National Aviation Fuel Group Air transportation logistics service 22,630 212 40,327 221 CITIC Group Financial Services 38,985 435 Sinomach Machinery Industry 22,487 446 Henan Coal & Chemical Coal 21,715 222 China Telecommunications Telecommunications 38,469 450 Lenovo Group Engineering, Technology 21,594 227 China South Industries Group Vehicles, new energy, equipment manufacturing, defence 37,996 458 Jizhong Energy Group Energy, Resource 21,255 229 China Minmetals Metals and Mining Corporation 37,555 463 China Shipbuilding Industry Shipbuilding and Shiprepairing 21,055 250 China North Industries Group Defense, IT, petro chemicals, 35,629 equipment manufacturing 467 China Pacific Insurance (Group) Insurance 20,878 276 China Huaneng Group Power Generation 33,681 475 ChemChina Chemical 20,715 279 HeBei Iron & Steel Group Metals 33,549 484 Zhejiang Materials Industry Group Metal materials, energy, 20,001 chemicals, logistics, Trading 289 People’s Insurance Co. of China Insurance 32,579 485 China National Building Material Group Construction 19,996 293 Shenhua Group Mining and Energy 32,446 From the July 25, 2011 issue 22
    23. 23. Appendix II: 12th FYP spending targetsChina will spend US$1.7tln over the next five years developing seven“strategic sectors” - confirmed by Chinese officials at the U.S.-China JointCommission on Commerce and Trade meeting in Chengdu in 21 Nov2011.The seven strategic sectors are referred to in China’s 12th Five-year Planas the “Strategic Emerging Industries”.The targeted sectors include alternative energy, bio-technology, new-generation information technology, high-end equipment manufacturing,advanced materials, alternative-fuel cars, and energy-saving andenvironmentally-friendly technologiesThe spending target is 2.5 times larger than the RMB4bn stimulus thecountry enacted at the end of 2008 which saw China spend its way out ofthe global crisis and speed up its emergence as a global force.
    24. 24. Appendix III: The 12th FYP’s Seven SEIs and 37 Projects for Sub-industries U.S. –China Economic and Security Review Commission, Hearing on China’s Five- Year Plan, Indigenous Innovation and Technology Transfers, and Outsourcing, testimony of Willy C. Shih, June 15, 2011.
    25. 25. EIU Survey results2
    26. 26. Footnotes¹ PwC, M&A 2011 Review and 2012 Outlook Press Briefing.2 Economist Intelligence Unit (EIU), A Brave New World, March 2010³ MOFCOM, NBS, SAFE, 2011 Statistical Bulletin of Chinas Outward Foreign DirectInvestment4 U.S. Energy Information Administration5 PwC, China Opportunities: As a market and as an investor, June 20106 The Heritage Foundation, Derek Scissors, Chinese State-Owned Enterprises andU.S.–China Economic Relations, 1 April 20117 IMF (2010a); and China Daily, “Overseas Direct Investment to Grow,” December 24,2010, 26
    27. 27. Footnotes contin.8 US Treasury Department data: China’s holdings reached US$1,164.3bn end 1H20129 MOFCOM officially disagrees with these figures, as they are based on differentmeasurement methods10 People’s Bank of China, financial statistical report of 1st quarter 2012 A Capital Dragon Index, 2011 Full Year, How fast is China Globalizing: Tracking Chinese11Outbound Investments, & 1Q201212 The Economic Times, China’s outbound investment touch $21.4 bn in Q1 201213 KPMG, 毕马威中国经济全球化观察, 2012 年第二季度14 Stratfor Global Intelligence, Chinese Investment Offers in Africa, 15 August 201215 Rhodium Group, China Invests in Europe – Patterns, Impacts and Policy Implications The figure refers to investments by 私营企业 accoridng to MOFCOM, NBS, SAFE, 201116Statistical Bulletin of Chinas Outward Foreign Direct Investment 27
    28. 28. Other referencesUS-China Economic & Security Review Commission, Going Out: An Overview of China’s OutwardForeign Direct Investment, 30 March 2011Economist Intelligence Unit (EIU), A Brave New World, March 2010PwC, China outbound M&A deal activity powers ahead, 15 August 2011PwC, China Opportunities: As a market and as an investor, June 2010MOFCOM, NBS, SAFE, 2009 and 2010 Statistical Bulletin of Chinas Outward Foreign Direct InvestmentThe Heritage Foundation, Chinese Outward Investment: More Opportunity than Danger, 13 July 2011The Heritage Foundation, Derek Scissors, Chinese State-Owned Enterprises and U.S.–China EconomicRelations , 1 April 2011Asia Society’s special report, An American Open Door? Maximizing the Benefits of Chinese ForeignDirect Investment, May 2011Deloitte, Borderless, boundless, 2011US-China Economic & Security Review Commission, Backgrounder: China’s 12th Five-Year Plan, 24 June2011APCO, China’s 12th Five-Year Plan, 10 December 2010McKinsey&Company, What China’s five-year plan means for business, July 2011EIU, China’s 12th Five-Year Plan or how to turn an oil tanker round, January 2011 28
    29. 29. Thank YouRicardo FerrerCEO, Asian Horizon Ltd.www.asianhorizonltd.comShanghai, 2013