Outward FDI flows (74. 4%) in 2015 were invested in its Asian neighborhood
The lion’ s share of China’ s outward FDI flows (74. 4%) in
2015 were invested in its Asian neighborhood, according to
MOFCOM’ s Statistical Bulletin of China’ s Outward Foreign
Direct Investment (SBCOFDI).
This region has tradition-
ally had an important economic significance for China (Fig.
6). 61. 7 percent was invested in Hong Kong alone (MOFCOM
et al. 2016: 26). Hong Kong has a special role thanks to its
geographical position and historical development. However,
so-called “round-tripping, ” where investment by Chi –
nese companies in Hong Kong flows back to the mainland,
is reason enough to believe that the data on Chinese FDI in
Hong Kong is distorted.
In addition, Chinese enterprises are
using Hong Kong subsidiaries for FDI in other countries,
which is not shown in national statistics.
EU Forecast
euf:ba1.8i:26/nws-01