Key outbound investment index unveiled

China has introduced its first-ever corporate outbound investment activity index (COIAI), a milestone in measuring the efficacy, vitality and patterns of the country's overseas outreach, officials and experts said.

Together with the latest statistical bulletin of outward foreign direct investment and several outward investment reports, the new indicator will provide companies, policymakers and financial institutions with comprehensive tools to better navigate international markets, they added.

Vice-Minister of Commerce Ling Ji underscored the significance of the coordinated releases, calling them "a trend line, a panoramic view and a road map" for China's outward investment. "Authoritative information releases not only showcase China's achievements, but also serve enterprises, financial institutions and think tanks by offering timely data and guidance," Ling said.

For the first time, multiple key reports on outward investment were released together, including the new activity index, sustainability standards and country-specific investment guides. This reflects China's ongoing reforms to improve the public service system for companies "going global" and to strengthen support for high-quality international cooperation, Ling said.

The COIAI, unveiled on the sidelines of the 25th China International Fair for Investment and Trade, recorded a reading of 142 in the first half, indicating a highly active level of outward investment by Chinese companies. The baseline of 100 was set using weighted monthly averages from 2018 to 2022.

Jointly issued by seven major Chinese industry chambers, covering sectors from international contracting and machinery to textiles, light industry, foodstuffs, chemicals and pharmaceuticals, the index represents member enterprises operating in 190 countries and regions.

The COIAI includes a composite index, a willingness index and an actual index. From January to June, the willingness index reached 149 and the actual index registered 137, both at highly active levels. In June, the overall index stood at 140, up 5.3 percent year-on-year.

"Despite sluggish global recovery and diverging capital flows, China's outbound investment this year has shown resilience, with steady growth in scale, optimized structure and diversified functions," said Fang Qiuchen, chairman of the China International Contractors Association.

Outbound investment in key regions remained robust. The ASEAN investment index reached 255, maintaining highly active levels for 16 consecutive months. The index for the European Union stood at 176, while investment into other BRICS economies registered 142, both considered highly active.

Trade figures further reflected this strength. The General Administration of Customs said ASEAN remained China's largest trading partner in the first eight months, with bilateral trade totaling 4.93 trillion yuan ($692.2 billion), up 9.7 percent year-on-year and accounting for 16.7 percent of China's total trade.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said the new index provides a timely reflection of market sentiment. "It offers businesses valuable references to seize international opportunities while reducing risks. It will also help inform policy adjustments to better support China's international economic engagement."

Alongside the index, the 2024 statistical bulletin of outward foreign direct investment was jointly released by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.

According to the bulletin, China's outward FDI flows reached $192.2 billion in 2024, an 8.4 percent increase from the previous year, accounting for 11.9 percent of global flows, up 0.5 percentage point year-on-year. This kept China among the world's top three investors for the 13th consecutive year.

By the end of 2024, China's outward FDI stock had reached $3.14 trillion, ranking among the global top three for eight consecutive years. In total, 34,000 Chinese investors had established 52,000 overseas enterprises in 190 countries and regions, including 19,000 in Belt and Road partner countries. About 70 percent of these enterprises were profitable or breaking even. Reinvested earnings reached $77.89 billion, accounting for 40.5 percent of total flows.

"China's outbound direct investment achieved stable and sound growth in 2024, with overseas enterprises operating generally well," said Zhang Li, director-general of the Department of Outward Investment and Economic Cooperation of the Ministry of Commerce.