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China's outward foreign direct investment (FDI) in 2020 hit $153.71 billion, increasing 12.3 percent year-on-year and ranking the first place worldwide for the first time ever, according to a report released by China's Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange on Wednesday. 

Capital stock of Chinese FDI reached $2.58 trillion at the end of 2020, ranking behind the US and the Netherlands, said the 2020 Statistical Bulletin of China's Outward Foreign Direct Investment.

China's FDI is also growing in influence, accounting for 20.2 percent of the total global investment volume, maintaining a level above 10 percent for five consecutive years. 

"China's third place in terms of the stock of FDI demonstrated the country's sophisticated industrial production capability," Tian Yun, former vice director of the Beijing Economic Operation Association, told the Global Times on Wednesday.

He noted that a country's export of capital must be based on its mature industrial sector as it's not only about money, but also the capability of exporting competitive products. "China's current capital exports will also bring our products, manufacturing techniques and industry chains abroad, which means China's global competitiveness is approaching top," he said. 

By the end of 2020, more than 80 percent of countries and regions around the world had received investment from China. 

A total of $22.54 billion was invested in countries along the Belt and Road Initiative in 2020, which accounted for 14.7 percent of China's overall FDI and also witnessed a year-on-year increase of 20.6 percent despite the COVID-19 pandemic, the bulletin revealed. 

The document also contained successful case studies resulting from China's outward FDI, noting that Chinese enterprises abroad paid taxes of $44.5 billion to the local governments of foreign countries and regions, and hired a total of 2.188 million foreign employees in 2020. 

"China spent two decades since the 1990s achieving the industrialization results, while some Western countries spent nearly 200 years," said Tian, adding that China's FDI stock will surpass Netherland in coming years.

Global Times