Chinese companies are focusing on supply chain restructuring and new markets as they navigate rising tariffs on their goods. A recent report, jointly published by several industry associations this week, offers key insights into this shift, revealing that outbound investment activity is now concentrated in sectors like manufacturing and transportation.

Earlier this week, China’s Ministry of Commerce, National Bureau of Statistics, and State Administration of Foreign Exchange jointly released the 2024 Statistical Bulletin of China’s Outward Foreign Direct Investment. The detailed report underscores China’s continued expansion as a global investor, reflecting its strategic priorities.

In recent weeks, Germany has made a decision to consider blocking a Chinese takeover of a retailer, and its scrutiny of a wind farm project has led to the dropping of a Chinese supplier.

Official data shows that China's overseas investment grew in 2024, driven by substantial flows into Belt and Road Initiative countries, positioning it among the top three global investing sources for the eighth consecutive year. However, early 2025 figures indicate a more uneven trajectory.

Last week, the Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews certain transactions involving foreign investment in the United States to determine the effect on national security, released its annual report to Congress for 2024.

Last month, the Taliban government in Afghanistan officially announced the termination of a 25-year oil extraction contract with Chinese investors, which was the first major foreign investment deal signed by the Taliban since regaining power in 2021.

Today, Hong Kong firm CK Hutchison, which operates vital ports around the world, announced a significant shift in its ongoing efforts to sell its port business, by bringing a Chinese investor into the consortium. This move underscores the complexities of divesting critical infrastructure in the current global climate.