The launch of China’s ‘Going Global’ strategy in the early 2000s initiated a long period of growth of foreign direct investment (FDI) outflow. The volume of FDI from China has increased from USD 4.612 billion in 2000 to USD 57.954 billion in 2010 (OECD, 2019) whereby mergers and acquisitions (M&A) accounted for the lion share. In 2016, China’s FDI outflows reached a record high of USD 216.424 billion before reaching more modest levels again in the following years (USD 96.472 billion in 2018) (OECD, 2019).
During the decade starting in 2000, M&A transactions took place predominantly in the manufacturing sector. But, as research by KfW Group (2018) shows, M&A activities soon began to expand beyond the manufacturing sector, also driven by the ‘Made in China 2025’ strategy which was adopted in 2015. Since then, Chinese investors focused increasingly on the key sectors under ‘Made in China 2025’: new information technology, numerical control tools, aerospace equipment, high-tech ships, railway equipment, energy saving, new materials, medical devices, agricultural machinery, and power equipment (People’s Daily, 2015).
By: Prof Dr Han & Carolin Han