An aerial drone photo taken on March 15, 2025 shows the Phnom Penh toll station on the Phnom Penh-Sihanoukville Expressway in Cambodia. The Phnom Penh-Sihanoukville Expressway, a project under the Belt and Road Initiative, is invested by the China Road and Bridge Corporation under the build-operate-transfer (BOT) model and is the first-ever freeway in Cambodia. Photo: Xinhua

China remained a major global leader in outward foreign direct investment (OFDI) in 2024, with its outbound investment reaching $192.2 billion, up 8.4 percent year-on-year, marking 13 consecutive years in the world’s top three and nine straight years with a global share exceeding 10 percent, according to an official report released on Monday.

The report noted China’s increasingly diversified investments, reinforcing its role in fostering mutual economic benefits worldwide.

Analysts said that China’s diversified investment strategy, bolstered by Belt and Road Initiative (BRI) cooperation and private-sector dynamism, has enhanced global supply chains and economic stability. As China continues to expand its OFDI, its role as a key driver of international economic collaboration continues to strengthen.

China’s OFDI accounted for 11.9 percent of the global total in 2024, up 0.5 percentage points from the previous year. As of the end of 2024, China’s cumulative OFDI stock reached $3.14 trillion, ranking third globally for eight years running, according to the report jointly released by the Ministry of Commerce, the National Bureau of Statistics, and the State Administration of Foreign Exchange.

The report noted the mutual benefits of and global economic contribution by China’s OFDI, which spurred $211 billion in goods exports in 2024, up 13 percent year-on-year, accounting for 5.9 percent of the national total.

Chinese enterprises abroad generated $3.6 trillion in sales, paid $82.1 billion in host-country taxes, and employed 5.02 million workers overseas, with 65.8 percent being local hires, underscoring China’s contribution to global economic growth, read the report.

Chinese investors demonstrated a global reach, operating in more than 80 percent of countries and regions. As of the end of 2024, they had set up 52,000 overseas enterprises in 190 countries and regions, including 19,000 in BRI partner countries, the report said.

These enterprises showed strong local performances, having reinvested $77.8 billion in profits, accounting for 40.5 percent of OFDI flows, with 70 percent reporting profits or breaking even, reflecting robust operations.

The report also highlighted China’s diversified investment sectors, as investments spanned all 18 sectors of the economy, with more than 80 percent concentrated in five key areas in 2024: wholesale/retail, leasing/business services, manufacturing, finance, and mining, each exceeding $10 billion.

Notably, construction investment grew 80.5 percent year-on-year, while information technology and software services expanded 205.5 percent, read the report.

By destination, China’s OFDI grew strongly across Asia, Latin America, Europe and Oceania, as well as in BRI partner countries.

Asia absorbed nearly 80 percent of China’s OFDI in 2024, up 8.5 percent, with ASEAN alone receiving $34.36 billion, up 36.8 percent. Latin America, Europe, and Oceania saw increases of 15.4 percent, 25.3 percent, and 113.7 percent, respectively. BRI partner countries attracted $50.9 billion, a 22.9 percent rise, comprising 26.5 percent of total OFDI, according to the report.

Private-sector and local enterprises drove much of the growth. Non-state-owned entities were active, investing $91.37 billion, up 24.6 percent, representing 54.3 percent of non-financial OFDI. Local enterprises, led by those from Guangdong, Zhejiang, and Shandong provinces, invested $108.43 billion, up 16.8 percent, outpacing the overall growth rate, the report showed.

Global Times