China's Economy & Policy-Gateway International Group
A rationalized, advanced and efficient industrial structure is one of the key factors in promoting the sustainable development of China’s economy. At the same time, expanding outward foreign direct investment is also a key component of the country’s strategic direction, and is closely related to domestic industrial restructuring. Based on an analysis of their relationship, this paper makes some proposals on optimizing the industrial structure by encouraging outward investment.
China’s opening up strategy has gradually developed from emphasizing only a policy of “introducing in” while ignoring “going out,” to putting equal stress on both activities. Guided by this new strategy, Chinese enterprises have increased their pace for “going global”. According to statistics from the Ministry of Commerce, in 2011, outward foreign direct investment (ODI) by domestic Chinese investors from non-financial industries involved a total of 3,391 foreign enterprises in 132 countries and regions around the world, with a cumulative investment value of 60.07 billion U.S. dollars. China’s ODI has had an increasingly significant impact on the domestic economy and has played an important role in promoting domestic industrial restructuring.