The Economist Intelligence Unit has released its findings for its 2015 China Going Global Index (GGI), which for the second year named the US followed by Singapore as the top two destinations for Chinese outbound investment. The index ranks the attractiveness of 67 major economies to Chinese firms, examining 70 indicators across areas such as infrastructure quality, agriculture, overseas contracted projects, service industry and country credit risk.
The highest-ranked countries were said to offer investors the best opportunities with the most limited risk. Australia and South Korea saw their rankings improve, with Australia moving from fourth place in 2014 to third in 2015, and South Korea jumping from 16th to eighth. Commodities-exporting countries, such as Russia, Kazakhstan, Pakistan and Kuwait, all fell in the rankings due to tumbling global commodities prices.
Meanwhile, China’s 'One Belt, One Road' initiative, a government-led strategy focused on increased connectivity, investment and export between China and much of Asia, Europe and east Africa, has improved FDI prospects for many higher-risk countries, such as Pakistan and Kenya, as they anticipate receiving increased public investment from China.