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Chinanews, Beijing, Sept 17 – Last year, Chinese direct investment at overseas market reached 21.16 billion US dollars. According to a recent survey from the Ministry1 of Commerce, 70% of Chinese companies either make a profit or break even at overseas market, the China Business News reported.
Last Friday, the Ministry of Commerce, the National Statistics Bureau, the State Administration of Foreign Exchange jointly2 released a report on Chinese direct investment at overseas market for the year 2006. This is the first time that the three departments jointly released a report on Chinese direct investment at overseas market. In 2006, investment in non-financial sectors4 reached 17.63 billion US dollars, increasing by 43.8% compared with the same period last year; investment in financial sector3 reached 3.53 billion US dollars, increasing by 16.7% from last year. According to the world investment report released by the United Nations Conference on Trade and Development, in 2006 Chinese overseas direct investment accounted for 2.72% of the global direct investment flow and 0.85% of the total global direct investment stock. In 2006, China ranked 13th in global direct investment flow. “Previously we estimated that during the Eleventh Five-Year Plan period (2006-2010), Chinese overseas direct investment might reach 60 billion US dollars. However, from the current situation, we know that the final result might far exceed this number,” said Chen Lin, deputy director of the Cooperation Department under the Ministry of Commerce (MOC). According to information from MOC, in 2006 Chinese companies in non-financial sectors generated 274.6 billion US dollars of sales revenue at overseas market and their tax revenue at overseas market reached 2.82 billion US dollars. The trade volume made by domestic investment entities5 through their companies abroad reached 92.5 billion US dollars. Based on the current information, it can be seen that 70% of Chinese companies at overseas market either make a profit or break even in their business performance. On the whole, Chinese companies business at overseas market is generally good, Chen stressed.
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