China’s overseas direct investment may not surpass FDI

The surge in Chinese overseas direct investment (ODI) in recent years, is unlikely to surpass the country's inbound foreign direct investment (FDI) in 2009, Chinese government officials say.

According to the World Bank forecast, though China's FDI was likely to decrease by 20 per cent in 2009, China would remain the top destination for FDI among developing countries.

China had remained the first destination of global FDI in developing countries for 17 years till 2008.

China's FDI is likely to touch around $130 billion in 2009, which will be one-tenth of the global FDI of $1.4 trillion and one-third of developing countries' FDI of $385 billion, according to Mansoor Dailami, manager of International Finance, Development Prospects Group of the World Bank.

China's FDI continued to decline and fell by 17.8 per cent to $6.38 billion in May compared to the previous year, as a result of the unprecedented global financial crisis since World War II. (See: China's FDI dips 17.8 per cent YoY to $6.38 billion in May).

Although the pace of the fall in May has reduced compared to the 22.5 per cent dive in April, it is almost double the drop in March which was 9.5 per cent.