China has poured more than US$1.2 trillion into
initiatives outside its borders in the past 10 years,
spurring projects across Africa, Latin America,
Southeast Asia and Oceania in particular.
But after years of double-digit growth, China’s economy—the world’s second largest—has slowed down,
with the annual GDP growth dropping to a rate of 7
percent, the lowest in six years. And that number is
projected to shrink further in the coming years.
That deceleration could have a major impact on
project landscapes in the nearly 140 countries in
which China has invested—but those consequences
won’t necessarily be negative. To counterbalance
the downswing in domestic construction and manu-
facturing, Chinese companies—which often receive
subsidies from the Chinese government when invest-
ing abroad—increased their direct investments in
other countries by 47 percent in the first five months
of 2015, according to China’s Ministry of Commerce.
“China needs to ensure that, as the domestic
infrastructure market slows, the large companies—
especially the state-owned ones—will continue
to survive,” says Rudy Halim, PMP, vice president director and CEO of power business at PT
Dian Swastatika Sentosa Tbk, Jakarta, Indonesia.
Furthermore, he believes China’s desire to exert
regional and global influence makes it unlikely the
yuan faucet will be turned off anytime soon.
The downturn that caused a slump in China’s
domestic manufacturing and construction actu-
coaster of the
past decade, one