Page 414 - 2017 White Paper
P. 414
7 White Paper on the Business Environment in China

Destinations of Reinvestment in 2016

For the first time we have noticed a shift of reinvestment to other markets.
Although 30% of respondents reported no shift, a majority responded that in 2016
they did shift some reinvestments to other markets with other ex-China Asian markets
soaking up much of the shifted funds.

To other markets in China 10.3% 16.4% 29.4%
(other than South China) 8.4%
To other Asian markets 4.7% 20% 29.9%
To European market 6.5%
15 20 25 30
To North American market 5 10
To South American market
To other markets than the above

No shift in reinvestment
Not applicable
0

In 2016, 13.3% of wholly foreign-owned enterprises, 11.4% of joint ventures, and
26.67% of representatives offices of foreign enterprises, representing a substantial
number of respondents, reported that they had shifted some reinvestments to other
Asian, ex-China destinations. Among the Chinese company respondents, a significant
percentage (17.6%) said that they had moved some reinvestments overseas to other
Asian destinations.

Different Forms of Companies and Their Shift of Reinvestment in 2016

Wholly foreignco-Womhwoplnlyaenfodyreignco-2om1w%pnaendy132%1%9%13% 9% 33% To other markets in C

33% (other than South China

Joint ventureJoint vent4u0re% 40%11% 81%1% 8% 171%7% To other markets in China

ReopfrfeosreenigtanticvoemRoeoppfrafeocsnreeeynigtanticv2oe0mo%pacney 2206%% 26%13% 13%20%20% 66%% 464%6% (other than SouTthoChointah) er Asian marke

Local Chinese company 31% 17% 11% 12% 13% 20% 150 To other Asian markets

Local Chinese company 31% 0 17%3011% 126%0 13% 9020% 120 To European mToarkEeutsropean markets

0 30 60 90 120 To North AmeTroicaNn omratrhketAsmerican m

To South AmeTroicaSnomuatrhketAs merican m

To other markets than above

Not shift of inTvoestomtehnet r markets tha

Not shift of investme

150

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