China's foreign investments will be more risk-averse

Significance

However, large Chinese acquisitions of high-tech companies in the West are increasingly perceived as a security threat and face tightening restrictions, making Chinese firms reconsider their ODI patterns.

Impacts

• Chinese investment in health, digital services, transport and infrastructure, and green business will become increasingly important.
• In the Global South, competition will intensify between increasingly active Chinese firms and those from Japan and the West.
• Developed countries will raise even higher barriers to Chinese investment in high-tech sectors.