Leading UK Academics emphasise continued opportunity for Chinese FDI into Europe
3 November 2014
Durham University Business School (Durham), part of one of the UK's most prestigious universities, Durham University, hosted an exclusive corporate forum in Shanghai last month in coordination with its sponsor, CITIC Pacific.
The event, which was entitled World Economic Outlook and its Impact on Chinese Investment, was held at the Langham Hotel. Part of a series of forums aimed at the international business community, the event was attended by students, academics and leading members of the business community and offered insights into the growth of China’s foreign direct investment (FDI) abroad, particularly in Europe.
The Dean of Durham University Business School, Rob Dixon, opened the event with a brief presentation which covered the world economic outlook, which has altered greatly since the 2008 financial crisis, and the resulting impact and opportunity for global Chinese investment. This was followed by a presentation by leading Durham academic Richard Harris, Professor of Economics.
Professor Harris delivered a presentation entitled: Chinese Outward FDI in Europe: Opportunities for Expansion, which outlined several notable trends in Chinese investment. In it, Prof Harris noted that while inward FDI stocks to China had exceeded hundreds of billions (USD) annually ever since the 1990s and is still growing rapidly, it has only been since 2008 that Chinese outbound FDI has matched this pace, approaching US$500bn in 2012. Prof Harris also outlined China's great potential to continue to expand its FDI. In 2011 China's outward FDI stock was US$425 billion, while the USA's was over ten-fold larger.
In a speech titled “Chinese Companies Going Out: a CITIC Perspective,” ”Mr Jijing Zhang, Chairman and President of CITIC Pacific and Vice President of CITIC Limited (SEHK: 267), shared his personal experiences working for CITIC in Australia, where the company’s Sino Iron mine is the largest overseas investment by a Chinese company in the resources sector. Zhang shared his own perspective, commenting that “’Going out’ is not just about the outbound flow of capital or the act of expanding beyond China’s borders. It’s about immersing ourselves in an unfamiliar environment, communicating openly with stakeholders, and learning international best practices.”
The session concluded with questions from the audience and a panel discussion about opportunities for further direct investment abroad.