CHINA’S INVESTMENTS abroad more than doubled in the first part of 2008, says Beijing. The level of direct investments of non-financial character reached USD 25.7 billion in the first six months. This is 2.3 times more than during the same period last year, said deputy Minister of Trade, Wang Chao on Thursday, July 24.
IN 2007, the total number was USD 18.7 billion. Non-financial investments are made by companies except for banks, insurance companies and security trading businesses.
– The Chinese government is encouraging companies to expand. China’s investments abroad will reach a new phase of fast development, said Wang Chao to journalists.
THE FOREIGN exchange reserve, currently amounting to USD 1.8 billion is constantly growing and the Asian giant is actively looking abroad for investment opportunities to maintain the GNP growth China has had for five years in a row.
IN FEBRUARY, the state-controlled aluminium company Chinalco together with US based Alcoia, bought 9 percent of Australian Rio Tinto for USD 14 billion. Chinalco’s share was the largest foreign investment ever made by a Chinese company. Growing financial concerns both within as well as outside the country also worries the government for increased Chinese investment risks. Last Tuesday, the government encouraged state companies to be extremely cautious with investments.
IN JULY, the government informed that foreign direct investments in China grew by 45.6 percent during the first six months to USD 52.4 billion.
TT-AFP