Why little Chinese investments despite India being top investment opportunity destination
India is the top destination for Chinese companies, but it falls to 11th place in the overall rank as the most attractive destination when other factors are considered.
In an Economist Intelligence Unit (EIU) report published this month, which indexes 80 investment destinations based on their appeal to Chinese investors, Singapore emerged the number one most attractive destination for Chinese companies to invest in.
The China Going Global Investment Index uses a robust and quantitative approach to rank countries based on their attractiveness for Chinese outward direct investment (ODI). It is aimed at assisting Chinese firms narrow down the list of potential investment destinations, and also focus the minds of recipient governments on the issues that matter for Chinese investors.
A total of 200 indicators were used to create the 2023 edition of the index.
These are groups into broad categories such as market expansion, supply-chain extension, natural resources exploration, technology acquisition, as well as risk considerations. The risk considerations include a country's bilateral relations with China and the operational and financial risks to general foreign investors.
In this year's edition of the report, EIU has incorporated new markets that are gaining attention from Chinese investors, such as Bolivia and Uzbekistan.
A higher weighting was given to risks, particularly those associated with geopolitics, which reflects the increasingly risk adverse approach to investment decisions.
The 2023 ranking saw many advanced markets plunging in their standing. This includes the US (28th), Japan (36th), Canada (55th) and the UK (60th).
