By the end of 2006, China's foreign direct investment had reached US$73.33 billion, distributed over 163 countries and regions in the world, the overseas Chinese fund enterprises has hit 10,673. This year, China's foreign direct investment continues to develop rapidly. It is expected to reach US$16 billion by the end of this year, up by thirty percent more than last year.

Chen Jian, Assistant Minister of China's Ministry of Commerce, said at the "Chinese and Foreign Enterprises International Congress" that China's foreign investment has changed from a single "green field investment" approach to a variety of ways including cross-border mergers and acquisitions, recently formed a diversified market structure. In 2006, China's (non-financial) foreign direct investment reached US$16.13 billion, up by 31.6 percent more than 2005. It moved up from seventeenth in 2005 to the thirteenth on the world list, the purchase method of direct investment reaching US$ 4.74 billion and making up 36.7 percent of the total foreign direct investment.

The latest research report published by the Ministry of Commerce shows that, at present, China's foreign direct investment has four main characteristics. The first is the diversification of regions within which China invests. In 2005, for the first time, China's investment in Latin America exceeded all of Asia, made its way up to first place, and continued at the top in 2006. The second is the enhanced general strength of Chinese international enterprises. The third is the gradual formation of an all-round, widespread, and multi-level investment structure. The fourth is a pick up in the development of cross-border mergers and acquisitions, becoming one of the most important methods of current foreign investment.

By People's Daily Online