Mapping China’s Outbound Investment (ODI) Shifts

• In 2024, China’s ODI rose to US$192.2 billion, with a clear pivot toward high-tech, green energy, and digital infrastructure, reflecting a strategy of innovation-driven, sustainable global expansion.
• Investments increasingly target Asia, BRI, and emerging markets, while flows to developed economies like the US decline; in 2025, strategic resilience, technological innovation, and diversified global engagement will guide Chinese enterprises.
• Looking ahead, Chinese firms are expected to deepen investment in priority sectors and BRI markets, aligning with national strategies and tapping emerging global opportunities.

China’s outbound direct investment (ODI) maintained strong momentum in 2024, rising to new record levels despite global economic uncertainties. According to the 2024 Statistical Bulletin on China’s Outward Foreign Direct Investment (hereinafter referred to as the “Bulletin”), jointly released by the Ministry of Commerce (MOFCOM), the National Bureau of Statistics (NBS), and the State Administration of Foreign Exchange (SAFE) on September 8, 2025, China’s ODI flows reached US$192.2 billion, an increase of 8.4 percent year-on-year.

The release of the bulletin was accompanied by the launch of China’s first corporate outbound investment activity index (COIAI), introduced on the sidelines the 25th China International Fair for Investment and Trade. With a composite reading of 142 in the first half of 2025, the index highlighted both the resilience and vitality of Chinese companies’ international expansion. Officials emphasized that the index, together with the ODI bulletin and newly published country-specific investment guides, will provide policymakers, enterprises, and financial institutions with more comprehensive tools to assess global market conditions and strengthen support for high-quality “going global” strategies.

In this article, we analyze the key trends, sectoral priorities, and regional patterns shaping China’s ODI in 2024, while providing a forward-looking outlook for 2025, with a focus on strategic sectors such as green energy, digital infrastructure, and Belt and Road Initiative (BRI) markets.

China’s overall ODI performance in 2024

In 2024, China’s outward direct investment (ODI) demonstrated steady growth against the backdrop of a modest global economic recovery, easing inflation, and ongoing geopolitical uncertainties. Of the total ODI flows (US$192.2 billion) highlighted in the Bulletin, equity investment accounted for US$73.05 billion (38 percent), reinvested earnings reached US$77.89 billion (40.5 percent), and debt instruments contributed US$41.26 billion (21.5 percent).

By the end of the year, China’s accumulated ODI stock (which measures the total accumulated value of all the country’s ODI ) had risen to US$3.14 trillion, spread across 190 countries and regions. This comprised US$1.76 trillion in equity investment (56 percent), US$989.36 billion in reinvested earnings (31.5 percent), and US$393.4 billion in debt instruments (12.5 percent). The total assets of Chinese overseas enterprises surpassed US$9 trillion, reflecting the scale of China’s international economic presence.

In terms of investor activity, around 34,000 Chinese investors had established more than 52,000 overseas enterprises by the end of 2024. Nearly 70 percent of these enterprises were profitable or breaking even, underscoring the resilience and sustainability of China’s outward investment.

When viewed globally, China remained a leading source of ODI. According to UNCTAD’s 2025 World Investment Report, global ODI flows totaled US$1.61 trillion in 2024, with China accounting for 11.9 percent of flows and 7.2 percent of global stock, ranking the country third worldwide in both measures.

The financial sector was a key contributor, with US$23.78 billion in outward flows in 2024, up 30.5 percent from the previous year. Within this, monetary and financial services (formerly banking) accounted for nearly two-thirds of total financial investment.

Non-financial investment flows totaled US$168.42 billion, a 5.9 percent increase year-on-year, and continued to play a vital role in driving China’s external economic linkages. Overseas enterprises contributed to US$211 billion in exports, US$71.2 billion in imports, and achieved US$3.63 trillion in sales revenue, while paying US$82.1 billion in taxes to host economies. Employment generated by these companies reached 5.02 million workers, of which nearly 66 percent were local employees, further embedding Chinese investment in host-country economies.

Together, these indicators show that China’s ODI in 2024 not only grew in scale but also strengthened in quality, with a balanced mix of financial and non-financial flows, higher reinvested earnings, and deeper integration into the economies of partner countries.

Distribution of China’s ODI by region

By the end of 2024, China’s ODI expanded its presence across 190 countries and regions, which accounts for 81.2 percent of all countries worldwide. This distribution highlights China’s growing global economic influence and its increasingly strategic approach to investment allocation.

Asia: Dominance and strategic financial hubs

Asia continues to absorb the majority of Chinese ODI, with a total stock of US$2.20 trillion, representing 70.2 percent of the global total.

Within Asia, Hong Kong alone accounts for 87.1 percent of the regional investment, making it the central hub for China’s overseas holdings. Other significant destinations include Singapore, Indonesia, Thailand, Vietnam, Macao, Malaysia, and Laos, reflecting a blend of financial, industrial, and trade-driven motivations.

Sectorally, the investments in Asia are heavily concentrated in leasing and business services, wholesale and retail, IT and software, financial services, and manufacturing, with automotive, electronics, and pharmaceuticals being particularly prominent. This concentration illustrates China’s strategy of leveraging Asia as both a financial center and industrial base for global operations.

Specific to ASEAN, China’s ODI in the region in 2024 showed a clear sectoral tilt toward manufacturing, which absorbed US$15.39 billion, up 68.2 percent year-on-year and accounting for 44.8 percent of total flows. This sharp growth underscores ASEAN’s role as a critical hub for China’s industrial chain restructuring and supply chain diversification amid global trade uncertainties. Manufacturing investment was concentrated in Thailand, Indonesia, Vietnam, and Singapore—markets that offer complementary advantages such as cost-efficient labor, expanding domestic demand, favorable trade agreements, and strategic logistics positions. The pattern reflects China’s dual strategy of both consolidating production bases in ASEAN and leveraging the region as a bridge for accessing global markets, particularly under the Regional Comprehensive Economic Partnership (RCEP).

Vietnam: Consolidating the “China+1” strategy in Asia

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Vietnam remains one of the fastest-growing recipients of Chinese ODI. In 2024, investment flows reached US$3.92 billion, up 51 percent from 2023. The stock of Chinese ODI stood at US$16.19 billion by year-end, marking a 19 percent increase from the previous year. Investment was concentrated in electronics, textiles, and machinery manufacturing, with firms such as Luxshare, Goertek, and Shenzhou expanding production facilities.

Latin America: Resource-rich and offshore investment centers

Latin America holds US$567.7 billion, or 18.1 percent of China’s global ODI, with the British Virgin Islands and the Cayman Islands accounting for 96.3 percent of regional investments. Other recipients include Mexico, Peru, Brazil, Argentina, Panama, Chile, Colombia, and Ecuador. The focus in Latin America is on leasing and business services, IT, financial services, manufacturing, and mining, which reflects a dual strategy of accessing natural resources while utilizing offshore financial hubs to optimize investment efficiency.

Brazil: Energy and digital services

In Latin America, Brazil recorded Chinese ODI flows of US$416 million in 2024, a 17.8 percent decline from the previous year. The stock of Chinese ODI fell to US$3.44 billion, down 12.8 percent year-on-year. While still significant in sectors such as energy infrastructure, renewables, and digital services, the scale of investment is much lower than earlier estimates suggested. The performance reflects both Brazil’s large consumer market and the challenges Chinese firms face in sustaining large-scale investments amid shifting global financial conditions.

Mexico: Strategic entry point to North America

Mexico continued to attract rising levels of Chinese ODI. In 2024, flows reached US$1.55 billion, up 44 percent from 2023, while the stock grew to US$4.88 billion, a 40 percent increase. Investments were concentrated in the automotive and EV battery sectors, as Chinese firms leveraged Mexico’s trade access to the United States under USMCA. This strategy enables them to bypass some geopolitical constraints on direct investment into the US, reinforcing Mexico’s position as a manufacturing base for accessing North American value chains.

Europe: Strategic expansion amid geopolitical complexity

Europe’s share of Chinese ODI stands at US$169.2 billion, representing 5.4 percent of the global total. Major destinations include the Netherlands, the UK, Luxembourg, Germany, Sweden, Russia, France, Ireland, Italy, Switzerland, Spain, Hungary, and Serbia, with Central and Eastern European countries collectively receiving US$6.19 billion, just 3.7 percent of total European investment. Chinese investments in Europe concentrate on manufacturing, financial services, mining, leasing and business services, and wholesale and retail, emphasizing high-value sectors and strategic integration despite regulatory and geopolitical headwinds.

Hungary: Europe’s new automotive hub

In Europe, Hungary stood out by attracting a growing share of Chinese ODI. In 2024, flows reached US$564 million, up 37 percent from 2023, while the stock climbed to US$1.52 billion, reflecting a 40 percent increase. These inflows made Hungary one of the most dynamic EU destinations for Chinese capital.

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The surge was driven by greenfield projects in electric vehicle battery production and auto supply chains, led by companies such as CATL. Hungary has deliberately positioned itself as Europe’s EV hub, offering favorable investment conditions, and Chinese capital has responded accordingly. This pattern illustrates how Chinese ODI aligns with Europe’s green transition agenda while concentrating in receptive policy environments.

North America: Technology, finance, and manufacturing

North America received US$116.2 billion (3.7 percent of global ODI), primarily concentrated in the United States, Bermuda, and Canada. Sectoral focus includes manufacturing, financial services, and mining, alongside significant investments in technology and service industries, reflecting strategic ambitions despite a complex regulatory environment.

United States: Retreat amid geopolitical pressures

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Chinese ODI into the United States stood at US$6.63 billion in 2024, down slightly from 2023 but still making the US the fourth-largest global recipient of Chinese investment. Geopolitical tensions, heightened scrutiny of Chinese deals, and shifting US industrial policies have impacted Chinese appetite for investment in some capacity.

Africa: Infrastructure and resource-oriented engagement

Africa hosts US$43.8 billion, or 1.4 percent of Chinese ODI, with major recipients including South Africa, the Democratic Republic of Congo, Nigeria, Niger, Mozambique, Angola, Mauritius, Ethiopia, Kenya, Algeria, Zambia, Tanzania, Egypt, and Ghana. Investments are predominantly in infrastructure, mining, financial services, and energy, reflecting China’s engagement in resource-rich economies and BRI-linked development projects.

Nigeria and South Africa: Anchors for Africa

In Africa, Chinese investment continues to deepen in Nigeria and South Africa. Nigeria has attracted growing Chinese commitments in infrastructure and energy, including renewables and power transmission. South Africa, by contrast, is a preferred destination for finance, industrial manufacturing, and digital services. These two economies remain the anchors of Chinese ODI in Africa, reinforcing Beijing’s strategy of embedding itself in the continent’s industrial development and energy transition.

Oceania: Natural resources and business services

Oceania accounts for US$38.5 billion (1.2 percent of the global total), with investments mainly in Australia, New Zealand, Papua New Guinea, Samoa, Fiji, and the Marshall Islands. Chinese ODI focuses on mining, leasing and business services, financial services, real estate, and manufacturing, aligning with the region’s natural resource endowments and strategic business opportunities.

BRI countries: Strategic growth

By the end of 2024, China had established 19,000 overseas enterprises in BRI countries, with a total ODI stock of US$370.1 billion, or 11.8 percent of China’s global ODI. T

The top BRI destinations include Singapore, Indonesia, Luxembourg, Thailand, Vietnam, Russia, Malaysia, Laos, UAE, and Cambodia, reflecting China’s strategic emphasis on infrastructure, trade, and financial integration in these markets.

Distribution of China’s ODI by sector

By the end of 2024, China’s ODI spanned all major sectors of the national economy, though it remained highly concentrated in a limited number of industries. The top seven sectors alone accounted for nearly 89 percent of total ODI stock, highlighting the continued dominance of traditional pillars in China’s global investment portfolio.

The leading sectors include:

• Leasing and business services (US$967.8 billion, 30.8 percent), primarily driven by investment holding structures and concentrated in offshore and regional financial centers such as Hong Kong, the British Virgin Islands, the Cayman Islands, Singapore, the US, Australia, the Netherlands, the UK, and Luxembourg.
• Information transmission, software, and IT services (US$398.2 billion, 12.7 percent), a sector where Chinese private investors are particularly active, reflecting the country’s push toward digital globalization.
• Wholesale and retail trade (US$384.3 billion, 12.2 percent), underscoring China’s deepening integration into global supply chains and distribution networks.
• Manufacturing (US$338.9 billion, 10.8 percent), concentrated in automobiles, electronics, specialized equipment, textiles and apparel, and pharmaceuticals, demonstrating China’s strategy to expand industrial capacity abroad and strengthen global value chain integration. Notably, automobile manufacturing alone accounts for US$73.4 billion, or 21.6 percent of manufacturing ODI.
• Financial services (US$326.7 billion, 10.4 percent), supporting corporate expansion, cross-border capital management, and international financial integration.
• Mining (US$248.6 billion, 7.9 percent), ensuring continued access to critical energy and raw materials, aligning with China’s resource security priorities.
• Transportation, warehousing, and postal services (US$114.7 billion, 3.7 percent), reflecting investment in water transport, multimodal logistics, aviation, and warehousing.

Other notable sectors include real estate (US$99.0 billion, 3.2 percent), electricity, heat, gas, and water production and supply (US$82.2 billion, 2.6 percent), scientific research and technical services (US$64.3 billion, 2.0 percent), construction (US$56.6 billion, 1.8 percent), and agriculture, forestry, animal husbandry, and fishery (US$22.2 billion, 0.7 percent). These figures highlight China’s gradual diversification into innovation-led, service-oriented, and sustainable industries, consistent with national policy priorities.

The 2024 data highlights some interesting trends in China’s ODI composition. While traditional sectors such as leasing, finance, manufacturing, and mining still account for over 60 percent of total stock, their relative shares have plateaued or even declined compared to previous years.

By contrast, emerging areas are expanding their footprint: the share of information technology rose from 10.5 percent in 2020 to 12.7 percent in 2024, scientific research and technical services expanded by nearly 30 percent in value over the past five years, and wholesale and retail trade climbed from 10.8 percent in 2019 to 12.2 percent in 2024.

Even within manufacturing, automobiles alone now account for more than one-fifth of sectoral ODI, reflecting the global push into EV supply chains. Together, these changes point to a more balanced, technology-driven, and sustainability-oriented global investment structure, consistent with China’s long-term strategy of securing resources, expanding industrial capacity abroad, and accelerating innovation-led growth.

Distribution of China’s ODI by ownership structure and source province/region

By ownership

By the end of 2024, China’s ODI was dominated by public enterprises, which accounted for nearly US$2.03 trillion (64.6 percent). Central enterprises alone represented US$1.25 trillion, reflecting their strategic role in securing overseas assets and supporting state-led initiatives. Non-public enterprises contributed approximately US$1.11 trillion (35.4 percent), highlighting the growing role of private capital in global markets.

Non-financial ODI (US$2.813 trillion) is overwhelmingly driven by domestic firms (82.5 percent), with limited liability companies (56.2 percent) and joint-stock companies (22.2 percent) forming the bulk. Foreign-invested enterprises (4.3 percent) and Hong Kong, Macao, and Taiwan-invested enterprises (3.5 percent) are smaller contributors, underscoring that China’s international investment strategy remains largely domestically anchored.

By source province

Regionally, ODI is concentrated in the more developed eastern provinces, which collectively account for over 83 percent of local non-financial investment.

Guangdong leads with US$251.3 billion, followed by Shanghai (US$171.9 billion), Zhejiang (US$136.8 billion), and Beijing (US$107.2 billion).  Other top provinces include Shandong (US$94.0 billion), Jiangsu (US$76.4 billion), and Fujian (US$36.4 billion), reflecting their industrial capacity, access to capital, and international networks.

Central, western, and northeastern regions play a smaller role, illustrating the persistent geographic disparity in China’s global investment capability.

This distribution suggests that China’s ODI is shaped not only by ownership structure but also by regional economic strength. Public enterprises drive strategic, state-aligned investments, while private and coastal firms leverage economic agglomeration and international connectivity, gradually diversifying China’s global investment footprint.

Comparing ODI performance: 2023 vs. 2024

Sectoral shifts

In 2023, China’s ODI was predominantly concentrated in sectors such as leasing and business services, wholesale and retail, manufacturing, and finance, collectively accounting for nearly 80 percent of the total.

However, in 2024, there was a discernible pivot towards high-tech, green energy, and digital infrastructure sectors. This transition aligns with China’s broader economic strategy emphasizing technological innovation and sustainable development. For instance, the value of newly-signed overseas engineering, procurement, and construction (EPC) projects rose by one percent year-on-year to US$267.3 billion in 2024, with a 13 percent increase in contracts for energy-saving and environmentally friendly projects.

Regional reallocation

The overall picture reflects a clear strategic reorientation. Asia retained its position as the primary destination, building on longstanding supply chain and regional integration ties. The continued emphasis on Southeast Asia, for example, demonstrates China’s broader “China+1” approach, as companies diversify production and manage risk amid geopolitical and economic uncertainties.

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In contrast, investment in developed markets declined noticeably. Chinese M&A in the United States, for instance, reached a 10-year low, while Europe saw concentration in a limited set of receptive economies. This trend is less a sudden withdrawal than the result of persistent regulatory scrutiny, rising geopolitical tensions, and stricter investment screening in major Western markets, which have collectively reduced the attractiveness of traditional destinations for large-scale M&A. Emerging markets in Africa, Latin America, and parts of Southeast Asia, by contrast, experienced stronger inflows.

These regions combine robust growth prospects with favorable policy frameworks, creating comparatively lower-risk opportunities for Chinese investors. Energy, infrastructure, and digital services in these markets align with China’s broader strategic objectives, including securing resources, building new trade links, and expanding global influence.

Overall, the data point to a deliberate recalibration of China’s ODI strategy: away from heavily regulated developed economies and toward emerging markets offering higher growth, policy support, and strategic alignment. The shift reflects a combination of market dynamics, risk management considerations, and long-term strategic planning rather than a short-term reaction to economic conditions alone.

Strategic outlook

Looking ahead to the remainder of 2025 and the first half of 2026, ODI strategy is poised for further evolution, influenced by both global economic dynamics and domestic policy adjustments. The focus is expected to shift towards enhancing strategic resilience through diversified global layouts and supply chain flexibility.

Diversification and supply chain resilience

In response to ongoing geopolitical tensions and the need for greater economic security, China is likely to continue its efforts to diversify its investment destinations. This strategy aims to mitigate risks associated with over-reliance on any single region or market. By expanding investments into a broader array of countries, China seeks to strengthen its economic ties globally, ensuring more stable and secure supply chains.

Deepening engagement in emerging markets

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China’s engagement with BRI countries and other emerging markets is anticipated to deepen. These regions offer significant growth potential and align with China’s long-term strategic interests. Investments are expected to focus on sectors such as infrastructure, energy, and technology, where China can leverage its expertise and resources to foster mutual growth and development.

Advancement in technological innovation

Technological innovation remains a cornerstone of China’s ODI strategy. Efforts are likely to intensify in developing globally competitive, independently controlled capabilities. This focus aims to navigate the increasingly complex external environment, ensuring that China remains at the forefront of technological advancements and can assert greater influence in global markets.

Policy support and strategic alignment

The Chinese government is expected to continue implementing policies that support these strategic objectives. This includes offering incentives for investments in key sectors and regions, as well as facilitating smoother investment processes for Chinese enterprises abroad. Such policies are designed to align with China’s broader economic goals and enhance its position in the global economic landscape.