Top 10 Chinese investment destinations
China has one of the largest foreign reserves in the world. With $3 trillion in foreign exchange reserves and a growing demand for resources, China has been strenthening investments around the world. Here is a list of 10 countries that had the most foreign direct investment (FDI) from China from 2004 to 2010.
1. Hong Kong FDI 2004-2010: $139.5 billion
Hong Kong is the foremost destination of Chinese investment. China’s interests in Hong Kong may not be surprising since it is close to the mainland.
2. Cayman Islands FDI 2004-2010: $27.3 billion
The Cayman Islands has long enjoyed strong business ties with China, both in inbound and increasingly outbound operations, and is arguably the most well-regarded and recognized offshore jurisdiction. Chinese companies invested in this tax havens to take advantage of tax breaks.
3. British Virgin Islands FDI 2004-2010: $13.9 billion
Chinese companies have been increasingly using subsidiaries in the British Virgin Islands to make offshore investments while retaining a zero tax status. Some notable Chinese firms from China include telecom giant China Mobile, social network SINA and automaker Geely.
4. Australia FDI 2004-2010: $6.97 billion
China is Australia’s largest trading partner. Chinese desire for the Australia’s natural resources has made it one of the biggest destinations of Chinese foreign investment.
5. South Africa FDI 2004-2010: $5.8 billion
China had great interest in the African continent. China is South Africa’s biggest trade partner and one of the biggest investors.
6. Singapore FDI 2004-2010: $4.7 billion
Singapore is one of the Asia-Pacific’s most important financial centers, it has attracted more and more investments from China these years.
7. United States FDI 2004-2010: $3.4 billion
Chinese investment into the U.S. is already on the rise. Energy deals take up the majority of new investment. But China is still a relatively minor player when it comes to FDI in America.
8. Canada FDI 2004-2010: $2.9 billion
China has been a big investor in Canada’s oil sands. The province of Alberta, the home of an abundance of oil sands, has seen a lot of interest from Chinese energy compaines.
9. Russia FDI 2004-2010: $2.5 billion
Despite Russia is China`s neighbor and good partner, Russia ranks only ninth on the list of China’s top 10 destinations for foreign investments.
10. Myanmar FDI 2004-2010: $1.6 billion
Myanmar, with lots of oil and gas reserves as well as mineral deposits, has been a big draw for Chinese firms. China is the biggest investor in the country.
