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Risky rewards for China's overseas investment drive

Spending spree sparks fears over nation's growing power and political motives

Beijing

CHINA'S inexorable economic rise is set to see it become a net global investor after decades of Western money flowing into the country, but analysts warn the change offers risks as well as profits.

Chinese oil behemoth CNOOC's US$15 billion acquisition of Canada's Nexen, completed last year, was just a fraction of the US$625 billion the country has invested abroad, much of it resources driven and also taking in other sectors including agriculture, manufacturing and banking.

But the looming changeover may be a sign that China is becoming less attractive as an investment destination itself, while some deals have been less successful than others.

Chinese external acquisitions were strictly controlled...

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