China Enters Ranks of Major Investors in Other Countries

Posted September 1st, 2011 at 1:25 am (UTC-5)
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China says its days as a massive net importer of foreign capital may soon be coming to an end.

People’s Daily, the flagship newspaper of the ruling Communist Party, reports on its website Thursday that Chinese foreign direct investment in other countries rose by more than 40 percent last year. It said the country is on a pace to send as much capital abroad as it receives by 2015.

That would mark a major turnaround for China, which has benefited from massive outside investment as it has risen to become the world’s second largest economy. Outside investment is pouring into China at a rate of about $10 billion a month, helping to create jobs even as it raises the risk of inflation.

But People’s Daily quoted government officials saying Chinese outward investment soared to almost $68 billion last year, making China the world’s fifth largest source of investment in other countries. The officials forecast the figure will reach $100 billion by 2013.