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China’s outbound investment rebounded in Q1–Q3 2025, with outbound direct investment (ODI) growth and overseas mergers and acquisitions (M&A) recovery driven by large deals.
In brief
- China’s ODI reached US$128.9 billion in Q1–Q3 2025, up 3.6% YoY, showing steady growth after a brief adjustment.
- Overseas M&A totaled US$29.8 billion, up 70% YoY, with 16 large deals over US$500 million – double last year’s figure.
EY has released the Overview of China outbound investment of the first three quarters of 2025, highlighting that China’s overall ODI has resumed its growth trend after a brief adjustment. Overseas M&A are recovering gradually, driven by an increasing number of large deals.
The report shows that China’s outbound investment remained stable with steady improvement, marked by ongoing structural optimization and sustained regional diversity.
In the first three quarters of 2025, China's economy maintained stable performance, with GDP growing 5.2% YoY – 0.4 percentage points faster than the same period last year1 – demonstrating resilience amid a complex and challenging external environment. Foreign trade in goods also improved steadily, accelerating quarter by quarter with 4% YoY growth. Trade with ASEAN, Africa and Central Asia grew rapidly2.
Since Q3 2025, China’s diplomacy has made positive strides, focusing on maintaining stable relations with major powers and deepening engagement with neighboring countries.
Policy support for global expansion
The Chinese government recently published a document explaining the recommendations of the CPC Central Committee for formulating the 15th Five-Year Plan3 (hereinafter referred to as “the Recommendations”) and outlining a clear blueprint for China's development over the next five years. The Recommendations provide guiding principles for the high-quality global expansion of enterprises, such as strengthening outbound investment management, improving overseas service system, promoting the integration of trade and investment, guiding the rational and orderly cross-border industrial and supply chains layouts, and advancing high-quality Belt and Road (B&R) cooperation.
In October this year, five departments4, including the Ministry of Commerce, jointly issued the Guiding Opinions on Further Improving the Comprehensive Overseas Service System, signaling more extensive and more systematic policy support for Chinese enterprises going global.
A stable domestic environment and predictable policy direction provide fertile ground for Chinese enterprises to accelerate globalization, entering a new stage characterized by higher quality and greater orderliness.
Key highlights
In the first three quarters of 2025, China's overall ODI reached US$128.9 billion, up 3.6% YoY. Non-financial ODI amounted to US$110.7 billion, an increase of 4.0% YoY, with Q3 alone rising 13.8% YoY. Non-financial ODI in B&R partner countries surged 23.7% YoY to US$30.0 billion, accounting for 27% of the total5.
Chinese enterprises announced a total of US$29.8 billion in overseas M&A value, up 70% YoY. While the total number of deals fell slightly to 302, down 4% YoY, the number of large transactions over US$500 million increased to 166.
- In terms of sector: By value, Technology, Media and Telecommunications (TMT) and Consumer sectors led the market, while by volume, TMT, Advanced Manufacturing & Transportation remained most active. Consumer, Health and Energy M&As showed strong regional concentration.
- In terms of regional trends: Asia remained the hottest destination, with M&A value up 151% YoY, accounting for more than 40% of the total. Europe M&A value reversed its earlier decline seen in H1 2025 and Latin America was the only region to record growth in both M&A value and volume.
In China overseas engineering, procurement and construction (EPC), newly-signed contracts reached US$192.9 billion and completed turnover hit US$122.3 billion, both marking decade highs for the same period, up 12.3% and 11.4% YoY respectively. B&R partner countries accounted for 88% of newly-signed EPC contracts and 84% of completed turnover7.
Summary
In first three quarters of 2025, China’s overall ODI reached US$128.9 billion. Overseas M&A totaled US$29.8 billion, by 70% YoY, with TMT and consumer products leading by deal value. Newly-signed overseas EPC projects hit US$192.9 billion, and completed turnover reached US$122.3 billion – both at 10-year highs.
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