In 2023, China’s investment in the Asia-Pacific region experienced a significant surge of 37%, reaching a total of nearly $20 billion
A report from Griffith University and Fudan University highlighted this increase alongside a 14% rise in construction contracts worth $17 billion.
This boost contrasts with a 12% fall in foreign direct investment in the region, showing China’s economic resilience amid global challenges.
China set a 5% GDP growth target for 2024 despite facing slow demand and domestic issues.
Much of its investment focused on improving infrastructure links to Belt and Road Initiative (BRI) countries. Yet, investments in non-BRI nations fell dramatically.
The report pointed out a pivot to green investments, signaling a strategic shift and a return to pre-pandemic engagement levels.
With 54% of its total regional engagement, investment is back near earlier levels.
Half of this investment went to Southeast Asia, with Indonesia receiving the largest share at $7.3 billion.
Notably, TikTok acquired a major stake in Indonesia’s e-commerce scene, marking a strategic move.
Some countries, however, saw no new Chinese investment or construction projects due to political and economic risks.
China-Pakistan Economic Corridor
The China-Pakistan Economic Corridor and Australia experienced significant drops in engagement.
Private Chinese firms focused on renewable energy and critical minerals led the investment charge.
Companies like Zhejiang Huayou Cobalt and Alibaba played key roles, emphasizing China’s commitment to the green transition and critical supply chains.
Investment in the EV sector and green technologies saw notable activities in South Korea, Vietnam, and Bangladesh.
Despite a BRI focus on smaller projects, investment deal sizes remained large, reflecting continued interest in significant infrastructure projects.
The report forecasts more Chinese investment and construction in the region, propelled by the green transition and the quest for international opportunities.
This suggests China’s ongoing commitment to major infrastructure projects to enhance global connectivity and minimize reliance on unstable transport routes.
Download the report here.