Authors: Huiyao Wang, Centre for China and Globalisation, and Bijun Wang, Peking University

While it is well known that FDI has been one of the important factors contributing to the Chinese economic miracle, it is perhaps less well known that China is now an important player in the overseas direct investment (ODI) global scene as well.

From 2003 to 2009, Chinese ODI flows grew at 55 per cent annually on average. Read more…

Authors: Bijun Wang and Yiping Huang, ANU and Peking University

China is an important overseas direct investor. But this is a recent development: before 2004, the size of Chinese overseas direct investment (ODI) was trivial. From 2004, ODI grew significantly, alongside a dramatic expansion of China’s current account surplus. Total ODI increased from US$2.85 billion in 2003 to US$56.53 billion in 2009, registering an average growth rate of 55 per cent a year. During the same period, its share in global ODI flow also rose from 0.45 to 5.1 per cent.

In 2009, China was not only the largest developing country investor but also the fifth largest investor in the world, following the US, France, Japan and Germany. Read more…

Authors: Yiping Huang and Bijun Wang, Peking University

Despite its extraordinary growth performance during the past decades, China’s structural risks have also increased significantly.  Premier Wen and other senior leaders have repeatedly emphasised that the existing growth pattern is unstable, unbalanced and unsustainable.

One of the most widely identified imbalance problems is the rising share of investment in GDP, which increases the risk of excess capacity and low returns. Read more…