'Chinese economy on track to meet growth target'

31 Dec '15

3 min read

China may be battling an economic slowdown. But the Government insists that the economy is on track to meet its growth target.

Both foreign direct investment (FDI) in China and outbound direct investment (ODI) have risen this year, putting the nation on track to meet its annual growth target, the China Daily has reported quoting Commerce Minister Gao Hucheng.

FDI is expected to reach $135 billion this year, up almost 13 per cent year-on-year, while ODI is forecast to hit $128 billion, up 24 percent year-on-year.

Gao said his department's main tasks in the 13th Five-Year Plan (2016-2020) will be to stabilize external demand, improve the quality of high-end manufacturing and adjust the industrial structure to attract quality FDI.

“We'll also encourage more Chinese companies to invest abroad to diversify sales channels in the global market,” he said at the ministry's annual meeting in Beijing.

Due to fast-growing manufacturing and service industries, China received $620 billion in FDI during the 12th Five-Year Plan period (2011-2015), up 30 per cent on the previous five-year plan. ODI grew 14.2 per cent over the same period.

Commerce Ministry spokesman Shen Danyang said the Belt and Road Initiative, which aims to improve regional connectivity between Asia, Europe and Africa and involves big-ticket infrastructure projects, has contributed to ODI growth this year.

The initiative, proposed by President Xi Jinping in 2013, includes the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and covers about 4.4 billion people in more than 60 countries and regions.

In the first 10 months of this year, Chinese ODI in 49 of the nations along the Belt and Road routes totaled $13.17 billion, up 36.7 per cent year-on-year, with Russia, Singapore, Laos, Indonesia and Kazakhstan among the top destinations.

The environmental protection sector has grown by about 20 per cent a year since 2011, with more than $500 billion injected in the sector over that period. A further 2 trillion yuan ($308 billion) is expected to flood in each year until 2020.

Gao said China will also step up negotiations next year on the Regional Comprehensive Economic Partnership, as well as the free trade agreement between China, Republic of Korea and Japan, and the country's proposed FTAs with Sri Lanka and Maldives, to build stronger trade and investment ties with global partners. (SH)

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