In recent years, the scale of China's outbound investment has been growing, providing a strong impetus for China's economic development. According to the latest data, in the first 10 months of this year, China's foreign non-financial direct investment reached 736.2 billion yuan, a year-on-year increase of 173%。Among them, the non-financial direct investment of the "Belt and Road" countries reached 1816900 million yuan, a year-on-year increase of 27%. In addition, the turnover of China's foreign contracted projects has also reached 8,568800 million yuan, a year-on-year increase of 83%。
We can understand this huge scale of foreign investment from different angles. First of all, foreign investment is a manifestation of China's economic opening up to the outside world. With the rapid development of China's economy, the domestic market has become saturated, and foreign expansion has become an inevitable choice for the development of Chinese enterprises.
Second, foreign investment is an important way for China to strengthen international cooperation. Through foreign investment, Chinese enterprises can integrate into the global value chain, expand their international market share, and cooperate with enterprises from other countries to promote industrial upgrading and international competitiveness.
Thirdly, outbound investment is the main way for China to achieve mutual benefit and win-win results. China has always adhered to the concept of mutual benefit and common development, and has focused on cooperation with the investing countries in its outbound investment, so as to promote local economic development, provide employment opportunities, improve people's livelihood conditions, and achieve common prosperity.
In addition, China's outbound investment has economic spillover effects. In recent years, China's investment in Southeast Asia has been increasing, bringing economic growth and development opportunities to other countries. This spillover effect is similar to the ripple effect, and through foreign investment, China has promoted the process of economic globalization and brought positive influence to countries around the world.
Why would China choose to expand its outbound investment on a massive scale?This is closely related to the phased characteristics of China's economic development. When a country's economy reaches a certain level of scale, the domestic market can no longer accommodate overcapacity, and at this time, outward expansion becomes the only development path.
At the same time, China has learned from the experience of the United States and Japan. These two countries have also invested heavily in foreign countries to boost economic growth after their economic development has reached a certain level. However, unlike the United States and Japan, China has the advantage of state-owned enterprises and state-owned capital, which can better guide and control the direction of outbound investment and avoid the negative impact of capital loss on the domestic economy.
In addition, China's outbound investment actively promotes exports. When China's domestic exports face a certain bottleneck, stimulating exports through foreign investment has become an effective means. Outbound investment can drive Chinese enterprises to go abroad, expand their overseas market share, and achieve international development. In this process, Chinese enterprises can also further improve their technology and management level, and improve product quality and competitiveness.
Despite the risk of capital loss with large-scale outbound investment, China has two major advantages that make outbound investment a good thing.
First of all, the strong strength of China's state-owned enterprises and state-owned capital. Compared with the United States and Japan, China's state-owned enterprises have greater dominance and control over outbound investment. This advantage allows China to more precisely direct the flow of capital and avoid the disorderly loss of capital.
Second, China's outbound investment is based on the principle of mutual benefit. Unlike traditional capitalist countries, China's outbound investment emphasizes common development and common prosperity. China wants to invest in other countries to help them achieve economic growth and improve people's livelihoods, not for plundering and exploitation. This concept of cooperation has won the recognition and support of many countries.
In summary, China's large-scale outbound investment is a pragmatic economic development option. Through foreign investment, China has not only achieved economic expansion and market expansion, but also promoted cooperation and exchanges with other countries, bringing opportunities for common development to all countries. The continuous promotion of foreign investment will further enhance China's international influence and competitiveness, and lay a solid foundation for achieving higher-quality economic growth.