China’s Investment In Belt & Road Initiative Countries Averaging US$12.76 Billion A Month

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China’s Ministry of Commerce has stated that Chinese non-financial investment in countries along the Belt and Road Initiative reached US$12.78 billion during the first 11 months of 2019, equating to an average monthly investment of US1.16 billion per month. Non-financial investments include real estate and commodities.

During the same period, Chinese businesses signed joint foreign contracted projects worth a combined total of US$127.67 billion, an increase of 41.2 percent year on year, and equating to Chinese companies along the Belt & Road signing average total contracts values to US$11.6 billion each month.

Of previously agreed foreign contacted infrastructure projects, the Ministry stated that US$74.61 billion had been completed.

In the reverse trend, Belt & Road nations invested US$7.02 billion U.S. dollars in China and set up 4,964 enterprises in the country.

“It is hard to separate these statistics from China’s regular FDI inflows and outflows” says Chris Devonshire-Ellis of Dezan Shira & Associates, “meaning that it is difficult to tell whether this investment is part of the natural trends in Chinese FDI overall or has seen a specific increase due to the Belt & Road Initiative. It would be useful for the MoC to provide information on China’s normal infrastructure investment trends and superimpose the Belt & Road statistics upon that to determine the actual success rate of the BRI beyond established trends.”

Overall foreign investment into China rose by 6% in 2019 despite the impact of the US-China trade war.

Investment and participation trends concerning the Belt & Road Initiative, and how foreign companies can participate can be viewed in the article China’s Belt & Road Initiative: Where We Are And What Is Arriving In 2020.

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Silk Road Briefing is written by Dezan Shira & Associates. The firm provides strategic analysis, legal, tax and operational advisory services across Eurasia and has done since 1992. We maintain 28 offices throughout the region and assist foreign governments and MNC’s develop regional strategies in addition to foreign investment advice for investors throughout Asia. Please contact us at asia@dezshira.com or visit us at www.dezshira.com

 

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