The Ministry of Commerce issued in 2016 “business development thirteenth five year plan” proposed, to 2020, the high level of the open economy system formed, China overseas investment totaled $720 billion in five years, the new competitive advantages of international economic cooperation is significantly enhanced, more active participation and governance of the global economy, put forward more Chinese scheme.
In the 2016-2020 years’ evaluation report on the development environment and investment opportunities of China overseas investment, China investment advisor said, “from the absolute value and growth rate of China overseas investment in the past ten years, there is not much suspense in the target of 720 billion yuan in 5 years. In the future, China needs to improve its own comprehensive strength and give full play to the role of the Association Chamber of Commerce in order to send a Chinese voice in the global economic governance system.
Highlight 1: trade in services will exceed 1 trillion dollars.
As an important part of China’s business development, domestic trade has been widely concerned.The “Outline” put forward by 2020, domestic circulation modernization level increase, the total retail sales of consumer goods reached 48 trillion yuan, an average annual growth rate of about 10%; the high level open economy system formed, further improve the trade structure, trade in services more than $1 trillion.
In 2015, the total retail sales of social consumer goods reached 30 trillion and 100 billion yuan, an increase of 10.7% over the same period last year, and the contribution rate of consumption to social and economic growth reached 66.4%, which is 15.4 percentage points higher than that in 2014.
In recent years, under the trend of industrial structure transformation, China’s service industry has been increasing rapidly, accounting for over 50% of GDP. This is the foundation for China to enhance the export of service trade. With the opening speed of the service industry and the increasing and widening of the Department, the space for the development of China’s service trade is huge.
Highlight 2: “The Belt and Road” provides great opportunities for China overseas investment
Put forward the “Outline”, “13th Five-Year” period, China’s utilization of foreign capital is no less than the size of the “12th Five-Year” period, improve the quality and efficiency of China overseas investment; five years totaled US $720 billion, to further optimize the industrial structure. Can this goal be achieved? In fact, after more than 30 years of reform and opening up, China’s position in international investment has changed dramatically. From the point of attracting foreign capital to a large two-way investment country, the amount of FDI has increased year by year. In the period of “12th Five-Year”, the scale of foreign direct investment in China was 2.3 times that of the “11th Five-Year” period. At the end of 2015, China’s stock of foreign direct investment was more than a trillion dollar mark for the first time.
In the release of “2016-2020 China foreign investment cooperation development environment research and Investment Opportunity Assessment Report” said that in 2015, China’s foreign non-financial direct investment reached a record high of $118 billion 20 million, an increase of 14.7%, achieved China overseas investment growth for 13 consecutive years, the average annual increase of up to 33.6%, the amount of foreign direct investment ranked third in the world, become worthy of the name of foreign investment country.
The concern is, “The Belt and Road” offers a great opportunity for the hitherto unknown Chinese enterprises to “go out”. In 2015, China’s enterprises in 49 countries related to “The Belt and Road” of direct investment, a total investment of $14 billion 820 million, an increase of 18.2%.
From the absolute value of nearly ten years of China overseas investment and growth, especially The Belt and Road infrastructure projects as Chinall as for Europe and the United States large enterprises and the acquisition of the brand will continue to maintain strong growth, 5 years totaled $720 billion target is not much suspense.
In the promotion of large-scale overseas merger and acquisition, China has become the main source of foreign investment in some developed countries; and as “The Belt and Road” initiatives and international cooperation to promote productivity, China investments in developing countries will continue to maintain high growth.
At present, China overseas investment is still large and not strong. At present, China overseas investment is going from resource acquisition to brand possession. Next, China need to focus more on innovative small businesses, research companies and design companies, and further enhance the level of foreign investment.
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