Two-Way Street: Chinese Manufacturers Also Invest Overseas

China's direct investment overseas reached $12.26 billion in 2005, exceeding $10 billion for the first time, the country’s Ministry of Commerce said Monday.

The figure, which excludes investment in the financial sector, rose 123 percent over 2004, the ministry said in a statistical bulletin covering overseas investments in 2005.

By the end of 2005, China's total direct overseas investment reached $57.2 billion, representing 0.59 percent of the world's total overseas investment.

The report also noted that 34.7 percent of companies investing abroad are engaged in manufacturing. Wholesale and retailing companies took up 17.5 percent with those specialized in lease and commercial services accounting for 17.5 percent. Companies active in the construction industry represented 7.6 percent. 

Asia and Latin America together account for 90 percent of China's combined overseas investment. Approximately seven percent of the companies investing abroad are large state-owned companies directly under the administration of Central Government and their subsidiaries.

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