china outbound investment

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China Outbound Investment

Why Chinese companies are coming out, and at what scale are they doing so.

How does it affect your brand/company?

Ricardo Ferrer

Asian Horizon Ltd.

Shanghai, 2013

1

www.asianhorizonltd.com2

Looking back: the China Outbound landscape changed

China’s vision for its companies to become global players was spelled out in 1999 with the “Go Global” policy - the State Council issued a new regulation which granted export tax rebates, foreign exchange management assistance and financial support to overseas Chinese enterprises that used raw materials, components and parts, and machinery equipment made in China.

Chinese companies have been investing outside of China through greenfield projects and through M&A.

Chinese ODI Flows (1982-2011)

0

1000020000

30000

40000

5000060000

70000

80000

US$ million

Source: United Nations Conference on Trade and Development (UNCTAD), “Inward and Outward Foreign Direct Investment Flows, Annual,” UNCTADStat Database. http://unctadstat.unctad.org. 9

Units in US$m at current prices and current exchange rates

Source: A Capital Dragon Index

Chinese ODI Flows (2005-2011)

01000020000

30000400005000060000

7000080000

US$ million


China’s war chest has been steadily increasing

As of the end of March 2012, China had US$3,305bn in foreign exchange reserves10.

China has had large foreign reserves from historical trade surpluses, high net foreign direct investments (“FDI”) inflows and speculative capital inflows.

Chinese officials realised that parking the bulk of their foreign reserves in the bonds of over-indebted Western governments would not generate the highest returns (at the end of June 2012, over 35% of the reserves were stored in low-yield US government bonds8).

Source: PRC State Administration of Foreign Exchange (SAFE)

China's foreign reserves (1990-2011)

0

10000

20000

30000

40000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

100mUS$


Historical Outbound M&A ActivityOutbound M&A was insignificant until 2005 when it passed US$10bn after which the pace picked up with a total of 207 announced deals in 2011 worth US$42.9bn¹. According to PwC’s analysis which includes announced deals (not necessarily closed), Chinese outbound M&A in 2011 represented an increase of 10% by deal number and 12% in deal value year-on-year¹.

However, according to A Capital Dragon Index which tracks Chinese outbound investments globally, the index dropped slightly in 2011 (from US$68.81bn to US$68bn in value) due to over-performing Chinese growth and possibly a sign of caution of Chinese investors towards volatile markets and increased discernment regarding investment opportunities. But Chinese outbound investment reached US$21.4bn in the first three months of 2012 which represents an increase of 118% in value compared to 1Q2011 (the A Capital Dragon Index does not include deals that have not closed).

Source: MergerMarket


Why Chinese companies are going out

“Go global” is a natural extension of the development path of Chinese companies. They are looking to:

• secure supply of mining and natural resource assets

• develop new markets outside China and intensify international presence

• acquire technologies and brands as many Chinese buyers seek to improve their competitive position in China

• make minority interest investments with a strategic partner to consolidate partnership and future cooperation opportunity

• gain access to learning international management skills and expertise

As part of China’s 12th Five-Year plan, China will spend US$1.7tln over the next five years developing seven “strategic sectors” - confirmed by Chinese officials at the U.S.-China Joint Commission on Commerce and Trade meeting in Chengdu in 21 Nov 2011. See Appendix IV and V for details on China’s US$1.7tln spending target over the next five years.

State-owned enterprises (SOEs) have dominated outbound investments in the past, but privately owned enterprises (POEs) are participating more and more in outbound M&A activities (Geely/Volvo, Tencent/Digital Sky, Level Up, Huawei/CIP).


The government watches outbound deals closely and is quick to change policy directions

China got burned by the loss of money in its first major investments in financial firms in 2008. China Investment Corporation (CIC) faced harsh criticism from the Chinese public and government and reassessed its investment strategy.

Other failed deals such as Chinalco’s attempt to double its stake in Rio Tinto drew embarrassment abroad and criticism at home. See map in Appendix I showing some failed Chinese investments.Through the complex onshore approval regime, the government ensures companies have properly planned and prepared their outbound investments.

We are seeing more minority deals combining western resources and technology with Chinese financing capabilities together with cooperation arrangements to form long term strategic relationships. Going for a minority stake is increasingly recognized as a way to tap into high quality assets that would otherwise not be for sale or out of reach for Chinese investors: Zoomlion/Electromech, CIC/GDF Suez, Weichai Group/KION Group.

Following the European debt crisis, instead of buying government bonds, Chinese funds are looking to invest in European infrastructure and technology companies.


Sources of China Outbound investment

POEs…

…present a huge potential. Private enterprises accounted for US$1.269bn (1.7%) of total non-financial ODI flows up to 201116. POEs, which have been growing in terms of number and size, are playing an increasingly important role in China’s economy5, and are particularly active in outbound M&A in the industrial and consumer related sectors.

The complicated approval regime at home and foreign exchange restrictions have kept the number of outbound deals by POEs down.

Private firms are increasingly active, with 28% of total investment amount (up from 17%) and 61% in terms of number of deals (up from 44%) in 201111.

SOEs…

…traditionally dominated outward investment because they are the biggest and most advanced companies with easy access to cheap financing from state-owned banks and have market presence. They are the largest Chinese companies in the natural resource sector.

The four largest outbound investors—CNOOC, Sinopec, China Investment Corp. (CIC), and China Aluminum—alone accounted for half of Chinese investment through the end of 2010. All are centrally controlled, with CIC one of the two sovereign funds6.

SOEs represented 98% of all deal value in 1Q2012 (as against 53% in Q1 of 2011), a record high, due to their focus on resources12.

See Appendix II for SOEs in Fortune 500.


Chinese outbound private equity

The private equity industry is fast emerging as a key provider of growth capital to China's privately owned SMEs. With some degree of fiscal tightening in China and volatility in equity markets, the role of PE and venture capital funds in this sector of the economy is set to grow.

Chinese funds are investing minority stakes alongside Chinese companies in midsized European companies with strong potential in China, either because of their branding or technology or some other edge.

There is a growing number of new Chinese funds that are keen to invest in debt ridden companies in Europe and the US which have solid businesses.

We are also seeing more leveraged buyouts and PIPES in offshore-listed PRC businesses - e.g. Focus Media by CEO Jason Jiang, The Carlyle Group, FountainVest Partners, CITIC Capital Partners, CDH Investments and China Everbright; Alibaba’s share buy-back from Yahoo; Citic Capital’s move for telecoms billing firm AsiaInfo-Linkage.


China Outbound Drivers and Investment areas

“When going out, the investment should carry benefits for the company and for China’s economy by either promoting Chinese exports,

enhancing the firm’s technological capacity and R&D activities, or enabling it to create and establish an international brand.”

MOFCOM


Drivers for PRC companies to “go out”Access to raw materials – oil, gas, mining:

Need to secure access to overseas energy resources and raw materials to support China’s high economic growth rate

Between 2004 and 2006 oil and gas attracted the most Chinese interest, between 2007 and 2009 interest shifted to the metals and mining sectors

Oil: China was the world’s second-largest consumer of oil behind the United States, and the second-largest net importer of oil as of 20094.

Mining: aluminum, copper, nickel, iron ore, and other key commodity products

Deals in the resources and energy sectors continued to dominate in 2011, representing 42% of the number of outbound transactions on a combined basis compared to 44% in 2010. This sector also accounted for 83% of deal values and 14 out of the 16 deals valued at over US$1bn¹.

Acquisition of Technology, Brands, and Know-How

Chinese companies are looking for advanced technology, manufacturing processes, and managerial know-how

Companies are encouraged to enter joint ventures or to purchase foreign companies through which they can absorb state-of-the-art technologies and thus “leapfrog” several stages of development and upgrades

Shougang (Capital) Iron and Steel/ Mesta Engineering and Design Inc (US); Lenovo/IBM and Medion AG; Tencent/Digital Sky Technologies; BAIC/SAAB, Sany/Putzmeister, Weichai/KION

The global crisis allowed China to go bargain hunting for firms with good brand recognition but in dire financial straits: Nanjing Automotive/MG Rover, Geely/ Ford Motor's Volvo, Shandong Heavy/Ferretti. Haier/Sanyo white goods business, Sergio Tacchini, Fila, Kappa.


Drivers for PRC companies to “go out” cont.Competition in the Domestic Market:

Chinese companies are facing intensifying levels of domestic and international competition. Saturated domestic markets or attempts to gain first-mover advantage in untapped markets overseas are drivers for them to go out.

Chinese firms can no longer compete on low cost alone so they are going out to obtain better research, development, and brand recognition. They want to have a competitive edge in the domestic market. Foreign companies control virtually all IP in China and account for 85% of China's technology exports.

Overcoming Trade Barriers

Some Chinese companies invest abroad in an attempt to avoid foreign quotas, tariffs, and other barriers to Chinese-made goods.

This was a more compelling motivation before China’s WTO accession, but some tariffs and quotas remain and Chinese firms have continued to build factories in countries that have relatively unfettered access to the American and European markets, e.g. TCL/Schneider deal was a way for Chinese television manufacturer TCL to avoid European quotas on Chinese imports.

Greenfield investments have also been made in order to take advantage of other country’s government subsidies, tax credits/breaks and cheap land, eg. Suntech’s factory in Arizona qualified for federal and state tax breaks.

Creating Global Champions

A top priority for the Chinese government under its “going global” strategy is the creation of a number of “global champions”, large PRC firms with globally recognized brands able to compete in the international marketplace.

All large investors, such as China Minmetals and Industrial and Commercial Bank of China, are centrally controlled. Almost all firms that might qualify as national champions are SOEs.

These also include partially government-owned variations or ones with strong government ties, eg Haier (appliances), Lenovo (computers), Huawei (telecommunications).


The Outlook is bright

China's ODI net flows in 2011 reached US$74.65bn, an increase of 8.5 % compared to the previous year. ODI grew an annual average of 45% between 2002 and 2011³.

For the first half of 2012, there were 117 outbound transactions³.

By the end of 2011, more than 13,500 PRC investing entities had established about 18,000 overseas enterprises in 178 different countries. In 2011 alone, China invested in 1,392 overseas projects in 132 countries³.


The Outlook is bright

Although macro-economic indicators show that China’s economy continues to slow down in 1H 2012, its accumulated outbound direct investments into the non-financial sector totalled US$35.42 billion, indicating 48.2% growth year-on-year13.

China’s outbound M&A will continue to grow with more diversified industry focus. As production of Chinese goods continues to move up the value chain and the country transitions to a consumer-led economy, buyers from China are keen to acquire more industrial know-how, technology and brands.

China will soon become a net exporter of FDI. China’s Ministry of Commerce expects this crossover to occur around 2015, while the International Monetary Fund (IMF) thinks that it could happen as early as 20117.

A Capital Dragon anticipates an additional US$800bn of Chinese ODI over the next five years.11

According to a SAFE official, the government is targeting a total of US$560bn in outbound foreign direct investment in the five years to 2015.


Geographical outlook

According to a survey by the EIU² at the beginning of 2010, 42% of the respondents said they planned to look to Asia-Pacific for investment, while 39% planned to invest in North America and 24% in Western Europe. Among manufacturing companies, eight out of 23 said they will focus on North American markets; their aim is market expansion.

Asia, in particular Hong Kong, is the primary destination of Chinese outbound investment. Singapore is becoming a popular platform for resources deals in the area. See Appendix III for a more detailed explanation.

China's outward FDI flows by region (US$ million, 2004-2011)

05000

100001500020000250003000035000400004500050000

2004 2005 2006 2007 2008 2009 2010 2011

Asia

Africa

Europe

Latin America

North America

Oceania

Source: PRC Ministry of Commerce (MOFCOM), National Bureau of Statistics (NBS), and State Administration of Foreign Exchange (SAFE)


2010 Outbound Direct Investment Flow by Region

Distribution of China's ODI Flow by Global Region, 2011 (US$ million)

Source: MOFCOM, NBS, SAFE

China has also begun to cut deals with resources-rich African nations under which it will fund the building of infrastructure in exchange for resources such as oil and copper. China struck such type of deals in seven African countries, worth a total of US$14bn between 2004 and 2010².

24803320 3170

8250

45490

11940

Africa

Asia

Europe

Latin America

North America

Oceana


2010 Top 10 destinations for Chinese ODI

1060.3

899.3708.2 405.9 376.4

1104.1

2926.1

2169.2

26251.9

372.8

Hong Kong

British Virgin Islands

Cayman Islands

Australia

Singapore

United States

Luxembourg

South Africa

Russia

Canada

Top 10 destinations of Chinese ODI, 2011 (US$ million)



China’s outward foreign direct investment flows into EU


There is a noticeable increase in Europe as an investment target, with 44 announced transactions in 2011, compared to 25 in 2010¹. The target sectors in Europe have been industrials and consumer related sectors besides the always popular resources sector.

Europe is experiencing the start of a structural surge in Chinese ODI in advanced economies. The take-off was only recent: annual inflows tripled from 2006 to 2009, and tripled again by 2011 to $10bn for the year. The number of deals with a value of more than $1m doubled from less than 50 to almost 100 in 2010 and 201115. In 12012, Europe was the no.2 destination behind South America and no.1 for non-resources with US$1.7bn invested and 83% of non-resource total11.

Country 2005 2006 2007 2008 2009 2010 2011

Austria - 0.04 0.08 - - 0.46 20.22

Belgium - 0.13 4.91 - 23.62 45.33 35.9

Bulgaria 1.72 - 0 - -2.43 16.29 53.9

Cyprus - - 0.3 - - - 89,54

Czeck Rep - 9.1 4.97 12.79 15.6 2.11 8.84

Denmark 10.79 -58.91 0.27 1.33 2.64 1.61 5.89

Estonia - - - - - - -

Finland - - 0.01 2.66 1.11 18.04 1.56

France 6.09 5.6 9.62 31.05 45.19 26.41 3482

Germany 128.7 76.72 238.7 183.4 179.2 412.4 512.4

Greece - - 0.03 0.12 - - 0.43

Hungary 0.65 0.37 8.63 2.15 8.21 370.1 11.61

Ireland - 25.29 0.2 42.33 -0.95 32.88 16.93

Italy 7.46 7.63 8.1 5 46.05 13.27 224.8

Latvia - - -1.74 - -0.03 - -

Lithuania - - - - - - -

Luxembourg - - 4.19 42.13 2270 3207 1265

Malta - 0.1 -0.1 0.47 0.22 -2.37 0.27

Netherlands 3.84 5.31 106.8 91.97 101.5 64.53 167.9

Poland 0.13 - 11.75 10.7 10.37 16.74 48.66

Portugal - - 0 - - - -

Romania 2.87 9.63 6.8 11.98 5.29 10.84 0.3

Slovakia - - - - 0.26 0.46 5.94

Slovenia - - - - - - -

Spain 1.47 7.3 6.09 1.16 59.86 29.26 139.7

Sweden 1 5.3 68.06 10.66 8.1 1367 49.01

United Kingdom 24.78 35.12 566.5 16.71 192.2 330.3 1420

Total 189.5 128.7 1044 466.6 2966 5963 7471

(US$ million). Note: Data for 2005, 2006 include only non-financial outward FDI flows.


Sectoral CompositionThe flow of investment in natural resource extraction accounted for nearly half of the total in 2003, one third in 2004, and about 40% in 2006 but dropped to less than 16% in 2009. The largest investments in 1Q2012 were dominated by the traditional pattern of Chinese state-owned companies investing in energy and resources companies in places like South America and Africa.

However, Chinese ODI targets a wide variety of business areas, reflecting the diversified nature of the country’s domestic industries and the Chinese government’s considerations. The consistently high percentage of investment flow in the service sector (30% in business services and 19% in finance in 2009) reflects the fact that ODI is largely used to serve and promote the export of Chinese commodities.

According to MOFCOM, the outflows of financial ODI reached US$6.1bn in 2011, among which US$3.4bn was in the banking sector (56%). By the end of 2011, total Chinese financial investments overseas was split between banking (80.1%), insurance (1.7%), securities (5.2%) and other financial sectors (13%). Investments by financial institutions dropped 29.7% to US$6.1bn in 2011, probably due to the continuing European debt crisis and a volatile global financial market. However investments by non-financial companies reached US$68.6bn in 2011, up 14% from the previous year³.


Outbound Direct Investment Flow by Sector, 2011

Distribution of China's ODI Flow by Sector, 2011 (US$ million)


2564 776

6

105

1648

707

1974

25597

117

255

1875

14446

7041

798

20

329

6071

10324

Agriculture, forestry, husbandry, and f ishery

Mining

Manufacturing

Production and supply of electricity, gas and w ater

Construction

Transport, storage and post

Information transmission, computer servises and softw are

Wholesale and retail trade

Lodging and catering services

Banking

Real Estate

Leasing and business services

Scientif ic research, technical service and geologic prospecting

Water conservancy, environment and public facilities management

Service to households and other services

Education

Health, social security and social w elfare

Culture, sports and entertainment


A word of warning

Extensive use of data has been taken from the 2010 and 2011 Statistical Bulletin of China’s Outward Foreign Direct Investment issued by MOFCOM, NBS and SAFE. Unfortunately, data most readily available from Chinese statistical sources generally have a reputation for inaccuracy and opacity.

Also, different sources have different measurement methods. All values must, therefore, be taken with some reservations.

By way of example, according to ThompsonReuters data, China outbound investment in 2011 reached US$59bn. PwC which based its analysis on ThompsonReuters and ChinaVentures data stated there were US$42.9bn with 207 deals in 2011, and according to A Capital which uses data sourced from Mergermarket, NBS, MOFCOM, UNCTAD and proprietary research, 2011 saw US$68bn worth of ODI flows from China. According to China’s 2011 Statistical Bulletin of China's Outward Foreign Direct Investment, ODI flows for 2011 were US$74.7bn.

The 2009 Statistical Bulletin of China’s Outward Foreign Direct Investment, compiled by MOFCOM, does not provide ownership breakdown for companies responsible for the rest of the capital (about 30%). They may include state enterprises that are governed by local (provincial or municipal) governments, and companies partially owned or controlled by the state, eg. Lenovo, TCL, and Beida Jade Bird (all listed companies) owned by the regional governments of Beijing, Shanghai and Guangdong.


Appendices


From the July 25, 2011 issue

Appendix I: Through consolidation and controls over new entrants, national champions have been built from large SOEs

Fortune 500 Rank

#

Company Industry Revenue (US$ billion)

297 China Metallurgical Group Equipment Manufacturer 32,076

311 Aviation Industry Gorp. of China Aerospace & Defense 31,006

326 Shougang Group Metals 29,181

328 Ping An Insurance Insurance 28,927

331 Aluminum Corp. of China Metals 28,871

341 Wuhan Iron & Steel Metals 28,170

343 China Post Group Utilities 28,094

346 China Resources Resources 27,820

352 Huawei Technologies IT, communications 27,356

354 Sinosteel Metals 27,266

366 COFCO Food, agribusiness 26,469

367 Jiangsu Shagang Group Metals 26,388

371 China United Network Communications Utilities 26,025

375 China Datang Power Generation 25,915

398 Bank of Communications Banking 24,264

399 China Ocean Shipping Shipping 24,250

405 China Guodian Power 24,016

408 China Electronics IT 23,761

430 China Railway Materials Commercial Steel Trade & Railway Service 22,631

431 China National Aviation Fuel Group Air transportation logistics service 22,630

435 Sinomach Machinery Industry 22,487

446 Henan Coal & Chemical Coal 21,715

450 Lenovo Group Engineering, Technology 21,594

458 Jizhong Energy Group Energy, Resource 21,255

463 China Shipbuilding Industry Shipbuilding and Shiprepairing 21,055

467 China Pacific Insurance (Group) Insurance 20,878

475 ChemChina Chemical 20,715

484 Zhejiang Materials Industry Group Metal materials, energy, chemicals, logistics, Trading

20,001

485 China National Building Material Group Construction 19,996

Fortune 500 Rank

#

Company Industry Revenue (US$

billion)5 Sinopec Group Petroleum Refining 273,422

6 China National Petroleum Petroleum Refining 240,192

7 State Grid Utilities 226,294

77 Industrial & Commercial Bank of China

Bank 80,501

87 China Mobile Communications Telecommunications 76,673

95 China Railway Group Construction, Engineering 69,973

105 China Railway Construction Construction 67,414

108 China Construction Bank Bank 67,081

113 China Life Insurance Insurance 64,635

127 Agricultural Bank of China Bank 60,536

132 Bank of China Bank 59,212

139 Noble Group Agricultural and energy products 56,696

145 Dongfeng Motor Automotive Motor Vehicles 55,748

147 China State Construction Engineering

Construction, Engineering 54,721

149 China Southern Power Grid Utilities 54,449

151 Shanghai Automotive Motor Vehicles & Parts 54,257

162 China National Offshore Oil Mining, Crude Oil Production 52,408

168 Sinochem Group Energy, agriculture, chemicals, real estate, finance

49,537

197 China FAW Group Automotive Vehicles 43,434

211 China Communications Construction Transportation infrastructure 40,414

212 Baosteel Group Metals 40,327

221 CITIC Group Financial Services 38,985

222 China Telecommunications Telecommunications 38,469

227 China South Industries Group Vehicles, new energy, equipment manufacturing, defence

37,996

229 China Minmetals Metals and Mining Corporation 37,555

250 China North Industries Group Defense, IT, petro chemicals, equipment manufacturing

35,629

276 China Huaneng Group Power Generation 33,681

279 HeBei Iron & Steel Group Metals 33,549

289 People’s Insurance Co. of China Insurance 32,579

293 Shenhua Group Mining and Energy 32,446


Appendix II: 12th FYP spending targets

China will spend US$1.7tln over the next five years developing seven “strategic sectors” - confirmed by Chinese officials at the U.S.-China Joint Commission on Commerce and Trade meeting in Chengdu in 21 Nov 2011.

The seven strategic sectors are referred to in China’s 12th Five-year Plan as the “Strategic Emerging Industries”.

The targeted sectors include alternative energy, bio-technology, new-generation information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars, and energy-saving and environmentally-friendly technologies

The spending target is 2.5 times larger than the RMB4bn stimulus the country enacted at the end of 2008 which saw China spend its way out of the global crisis and speed up its emergence as a global force.


Appendix III: The 12th FYP’s Seven SEIs and 37 Projects for Sub-industries

U.S. –China Economic and Security Review Commission, Hearing on China’s Five- Year Plan, Indigenous Innovation and Technology Transfers, and Outsourcing, testimony of Willy C. Shih, June 15, 2011.


EIU Survey results2


Footnotes

¹ PwC, M&A 2011 Review and 2012 Outlook Press Briefing.

2 Economist Intelligence Unit (EIU), A Brave New World, March 2010

³ MOFCOM, NBS, SAFE, 2011 Statistical Bulletin of China's Outward Foreign Direct Investment

4 U.S. Energy Information Administration

5 PwC, China Opportunities: As a market and as an investor, June 2010

6 The Heritage Foundation, Derek Scissors, Chinese State-Owned Enterprises and U.S.–China Economic Relations, 1 April 2011

7 IMF (2010a); and China Daily, “Overseas Direct Investment to Grow,” December 24, 2010, http://www.chinadaily.com.cn/bizchina/2010-12/24/content_11749290.htm


Footnotes contin.8 US Treasury Department data: China’s holdings reached US$1,164.3bn end 1H2012

9 MOFCOM officially disagrees with these figures, as they are based on different measurement methods

10 People’s Bank of China, financial statistical report of 1st quarter 2012

11 A Capital Dragon Index, 2011 Full Year, How fast is China Globalizing: Tracking Chinese Outbound Investments, & 1Q2012

12 The Economic Times, China’s outbound investment touch $21.4 bn in Q1 2012

13 KPMG, 毕马威中国经济全球化观察， 2012 年第二季度14 Stratfor Global Intelligence, Chinese Investment Offers in Africa, 15 August 2012

15 Rhodium Group, China Invests in Europe – Patterns, Impacts and Policy Implications

16 The figure refers to investments by 私营企业 accoridng to MOFCOM, NBS, SAFE, 2011 Statistical Bulletin of China's Outward Foreign Direct Investment


Other referencesUS-China Economic & Security Review Commission, Going Out: An Overview of China’s Outward Foreign Direct Investment, 30 March 2011

Economist Intelligence Unit (EIU), A Brave New World, March 2010

PwC, China outbound M&A deal activity powers ahead, 15 August 2011

PwC, China Opportunities: As a market and as an investor, June 2010

MOFCOM, NBS, SAFE, 2009 and 2010 Statistical Bulletin of China's Outward Foreign Direct Investment

The Heritage Foundation, Chinese Outward Investment: More Opportunity than Danger, 13 July 2011

The Heritage Foundation, Derek Scissors, Chinese State-Owned Enterprises and U.S.–China Economic Relations , 1 April 2011

Asia Society’s special report, An American Open Door? Maximizing the Benefits of Chinese Foreign Direct Investment, May 2011

Deloitte, Borderless, boundless, 2011

US-China Economic & Security Review Commission, Backgrounder: China’s 12th Five-Year Plan, 24 June 2011

APCO, China’s 12th Five-Year Plan, 10 December 2010

McKinsey&Company, What China’s five-year plan means for business, July 2011

EIU, China’s 12th Five-Year Plan or how to turn an oil tanker round, January 2011


Thank You

Ricardo Ferrer

CEO, Asian Horizon Ltd.


Shanghai, 2013

29