BEIJING, Apr. 17 (Xinhua) -- China's investment in the countries along the Belt and Road will continue to grow and investment will flow into industries in line with the social and economic development demand of the host country, according to Zhang Ming, an analyst at the Institute of World Economic and Politics of Chinese Academy of Social Science.
He predicts China's direct investment to countries related to the Belt and Road will reach 23.6 billion dollars and outstanding investment will reach 160 billion dollars in 2017.
He also says China's investment to Latin America will keeping growing and the investment will become more market-oriented rather than government-oriented. Investment to manufacturing industry, new energy and financial industry will further increase and private companies will be more active.
Zhang points out that on the one hand, the proportion of China's outbound direct investment in its GDP is relatively low, meaning that there is still large room for expanding. On the other hand, according to the theory of investment development, net capital outflow will also show an upward trend.
However, considering the policy changes that the government will strengthen examination on authenticity and compliance of outbound investment, the growing pace will likely slow down, says Zhang.
Meanwhile, Wang Bijun, assistant analyst at the institute says China's outbound investment directions will diversified. High-end manufacturing and high-end consumption will continue to be the hot spots. Local government-owned companies may be the mainstream investors and private companies will also invest overseas more driven by the rising cost in domestic market. (Edited by Yang Qi, kateqiyang@xinhua.org)
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